Share 'FT and Embedded Taxes (Econ Question)'

FairTax proponents argue that all embedded taxes are ultimately passed on to consumers by corporations, but it would seem to me that, at least based on economic theory, that they’re only passed on to the extent that the consumers are willing to tolerate the overall price of the product (supply and demand). In other words, if the embedded taxes, plus the company’s profit margin are too much, cons…