White House Sidelines Christmas Tree 'Tax' | Fox News - 0 views
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Katie Edwards on 09 Nov 11A tad early, but Christmas music will be coming on the radio next week! At least here in DC.. The article outlines a government plan to make a little extra revenue, and how that plan was so fiercely opposed. The tax would be imposed on the producers, given that they produce more than 500 trees a year, and in turn the producers would probably have to increase their prices. Since it is a specific tax with a fixed amount of $0.15 (not dependent on the price of the trees) it will shift the supply curve up. Even though the article states that the program "wouldn't have any impact on the final price consumers pay for their Christmas tree" - there would be an inevitable small impact at least in one retail area of the trees. Since there are so many consumers that will want Christmas trees, a tax would bring in a fair amount of money, as there are no substitutes for Christmas trees.