[mikeyouse]

> If they are not taxed, they can offer a lower price to the customers.

This assumes the owners are targeting some set return rather than pricing their products at whichever point the market can bear, which is a giant, unsubstantiated assumption.

If GM was paying an effective 5% tax rate, which was then cut to 0%, do you honestly think they would lower prices? Yes, I know the theory that Ford would get the same benefit, then lower their prices in competition, but history has repeatedly shown that this is unlikely to result in a price war. Informal collusion is fairly easy to maintain and it's unlikely that the marginal loss in sales from a 5% price premium would be enough to offset an additional 5% booked straight to profits.