If it suddenly cost 40% less to make a product, even if the corporation only passed on 20% of that 40% initially, prices would drop. If a product cost $2.00 to make after taxes and gets sold for $4.00, with $1.00 of overhead cost coming out, that's about $1.00 of profit that gets taxed $.40. If the product costs $1.60 because that tax is gone, it could be sold for $3.20 with the $1.00 overhead, and the corporation still makes the same $.60 profit, but the cost of that $3.20 product after the 23% tax is $3.94 - but they're paying that out of their whole paycheck plus their prebate. So the cost of bringing that product home is less, the corporation makes the same profit, and the taxes are still paid to cover the cost of running the government.
Corporations will reduce their costs as a function of competition. Some might temporarily withhold the savings, but as soon as the first "Tax sale! We're passing the savings on to you! Buy now and save!" commercial flashes across the TV, prices will drop dramatically. I will cover more on corporations in my next post.