|
Hidden Taxes: Goods and Services |
|
|
There are hidden taxes on the goods and services that all of us buy that go far beyond sales taxes. Corporations calculate the prices they charge for their products starting with their costs.
The first rule of the Corporate Club: The price of a product must exceed its cost.
It doesn't matter whether the costs come from materials, labor, manufacturing equipment, shipping, or taxes. They all get added to the final retail price. So when you purchase a bag of groceries you're paying your share of all the taxes paid by the grocery store, the shipping companies, the packagers, the farmers who produce the food, as well as the income taxes of the cashier and the bag boy.
You're paying all of the corporate taxes from farm to table for your sales tax-free bag of groceries.
Aside from the issue of government deception, this is bad because it raises the price of goods produced here relative to comparable imported goods.
The second rule of the Corporate Club: The price of a product must be low enough to sell briskly.
When the tax component of an imported car is significantly smaller than that of a similar domestic car, the foreign automobile manufacturer gains a price advantage -- and can sell more cars. The domestic producer sells fewer cars, resulting in fewer employees and reduced local investment.
Corporate taxes are a destructive method of hiding taxes from the consumer. This is justified by the demand that 'rich' corporations pay their 'fair share', as if they weren't simply collecting them from their customers.
|
|
| | mail this link | -Ray Yeargin, October 1, 2008 |
(Contact: root at this domain)
© 2008-2009, Ray Yeargin
| |
|
