You get a C+, gatorbait.<quoted text>
Since you have never seemed to have run a business Teddy, yes, you're partially correct that expenditure increases are passed down to the consumer, but only to a point. One can only charge for goods and services what the market will bear. It is entirely possible to charge ones way out of business. If a business has an expenditure it cannot pass down to the consumer, the business must then find a way to slim down the delivery process to recoup the losses to stay in the black.
Economics 101 doesn't seem to be your forte' imho.
Makeup question to salvage your grade:
1) If there were ways to "slim down the delivery process to recoup the losses to stay in the black" available to you _before_ corp taxes were increased on your business, WHY DIDN'T YOU, and produce better profits? Why are you waiting until you're in a loss-making position before effecting changes for efficiency? Answer - You're an incompetent, lazy manager. You're fired.
And an extra credit question - get this right and you MIGHT pass the test:
2) If you are a competent manager, already running your business at maximum efficiency so there is no possible way to further "slim down the delivery process," when US corporate taxes are raised on your business, pushing you beyond the point where "expenditure increases (can be) passed down to the consumer" because "one can only charge for goods and services what the market will bear," WHAT HAPPENS?
(Big hint - as you seem to need it - from your own post: "It is entirely possible to charge ones way out of business).