[hmkpoker]

You've assumed quite an interesting supply-demand curve there; a 10% increase in consumer cost results in an 80% loss in sales? (the sale of gas at pumps, which you cited as an example, is clearly not reflective of this.) And since we're talking about taxes here, all the competition is going up as well.

I can't think of one good that is this inelastic. A 10% increase from all parties results in an 80% sales loss? If this were true, we could tax any corporation to the point we're they're scarcely making a penny and the sales prices wouldn't change...yet in the real world, the prices go up, the sales are high, and the CEOs still make money.

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Joe gets candy bars for 35 cents, and can sell...for 55 cents a piece (25 cents profit per).

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Come on.