[quote=pri_dk]
Price/volume relationships have nothing do with taxes. People don’t “buy” more taxes when the price goes down.[/quote]
Hobie’s point is that a business gets more customers when it lowers its prices. Through volume, the business is better able to increase its revenues even though its price is low. There are more people available to purchase at a low price point vs. a high price point.
A similar thing happens when taxes are low. If taxes are low, there is less incentive to avoid paying taxes, thereby opening up more people to be susceptible to taxes.
Case in point: John Kerry preferred to keep his yacht in Rhode Island (low taxes), as opposed to Massachussets (higher taxes). Even though he was rich, he still wanted to avoid paying such an onerous tax.
