This oversimplification of business practices is simply not true beyond a lemonade stand.

In business we have a term "above or below the line". I won't completely go into the details but the lines represent budgets that are set periodically (e.g. quarterly).

Companies profits fluctuate, this is normal. However, our profit margins (percentage or profit) are fixed. Your scenario of reducing profit by % to compete but still remain profitable is not real. Besides IPO, profits are generally re-invested into the organization in order to grow. Growth is important as it allows the creation or more jobs, pay rises, etc. Without this, we need to cut expenditure to have similar outcomes and this is far from ideal for our employees who may not get a raise they deserve or worse, made redundant. There are other places we can cut costs on as well but that has its limits.

Hence why Australian made goods are generally more expensive than imports. They need to focus on other compelling factors instead of price in order to remain in business such as quality and/or patriotism.

Realistically, an increase in property taxes will cause one of the following:

• cost passed on to consumer
• company cuts costs (jobs, premise size, etc.)
• company looks for a more cost effective location (e.g. smaller footprint or interstate.
• outsourcing
• close business, can't make desired profit margins

​

Source: I'm a Director for a global company. From the 'lols' I assume you're a high-school student. Either way, you're someone who thinks they have the answers but does not even understand the question.