Sir Winston Churchill once said " The best argument against a Democratic government is a 10 minute conversation with the average voter".
Ah yes, the average voter. The same people that elected our current administration which, in turn, has managed to spend it's way into unimaginable debt and has us, the working class, staring down the barrel of the biggest tax increase in history. In their opinion, it is our responsibility to assure that the new "Entitlement Class" is cared for by the sweat of our brows.
Let's start this first post with the discussion of Business Taxes. It seems to be the view of the current administaration and it's constituents that all businesses, large and small, are wealthy, evil, and should be penalized for their hard work and success. Let's not take into account, for sake of discussion, that these evil entities are the one's that employ 85% of the countries work force or the fact that, from day one, they were the backbone of our great country. Let's just discuss the way that they are taxed.
1.) The taxes they pay: From their first day in business, companies are taxed. Business license fees, payroll taxes, sale & excise taxes, income taxes, fuel surcharge taxes..etc, not to mention taxes that are implemented on the exhorbitant utility bills that these companies pay.
2.) The result: In a "Perfect World", not to mention a great economic climate, businesses, in fact, do not pay taxes. The "Cost of Doing Business", also known in the business world as overhead, is rolled into the cost of products and/or services that they produce resulting in the end consumer picking up the tab for increased taxes on businesses. Doesn't this make you feel better about punishing those evil, wealthy business owners?
3.) The reality in today's economy: OK, so we know that in a perfect world, businesses don't pay taxes. The end consumer, through inflationary measures, does. What about in today's economic climate? With product demand at record lows, unemployment looming at 10-16% (depending on who's statistics you follow), and competition with the fierosity of a category 5 hurricane, what now? How do we pass on the tax burden?
I'll gladly tell you how. With lay-offs, salary cuts and benefit adjustments. That's how. In this competitive economic climate, every penny that businesses add to the cost of their end product is a one cent edge they lose in their competitiveness . It's one more percent of the market share that they lose and it's one more job that they have to terminate.
So, where does it end? How does it end? Let's hear your take on this situation. I welcome all comments, and posts. Let me know where you stand on this and other issues and let me know what topics of discussion you want for future posts.
I'm Tired Of The Tax
Jon Waliga
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