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To: Kaslin

Kind of an idiotic article.

Government policies aren’t driving Jewish delis out of business, since such policies don’t have any specific aspects that target this category of restaurant vs. others.

IOW, if consumers are spending about as much money total at restaurants as last year, which is presumably true, then declining business at Jewish delis is the result of changing consumer preferences, not government policies, too much competition, or anything else.

I get very tired of these claims that taxation, etc. burdens small business and drives them out of business. Businesses primarily collect taxes, not pay them.

When a cost, such as a tax or regulation, goes up, a business raises prices to recoup the additional cost and maintain profit margins. Unless consumers refuse to pay the additional cost, or more often because competitive businesses are not subject to that cost for one reason or another, the business is unaffected.

Assume a state that had previously not had sales tax on groceries and puts it in. Suddenly the grocery’s cost goes up by 7%. Does it somehow absorb that cost or pay it out of profits? Of course not, it just goes onto the bill to the customer.

Unless people stop eating as much, which would be good for most of them, the grocery’s business and profits are unaffected. There are some marginal impacts, mostly to groceries near the state line, who will lose some business to stores across the border who still don’t charge sales tax. But they’re minor.


3 posted on 02/24/2013 4:17:34 AM PST by Sherman Logan
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To: Sherman Logan; FatherofFive; Kaslin
Good food or bad, just the cost of it is going up just like with fuel. The overall effect is of a narrowing our choices,i.e.,where and when we travel and what we eat. In a conspiratorial sense, its an attempt th herd us all into a human equivalent of a CAFO, Confined Animal Feeding Operation, for Agenda 21 purposes.

More people a getting interested in the local food option theese days which is a very good thing. It generally cost more but it is upfront pricing in that it isn't highly subsidized like corn an soy beans and it costs less from a health care standpoint because of its better nutritional value.

Controlling food is essential to controlling the people. And I believe that's what 's going on. It is the Gulag principle. We have the 2nd ammendment, but if we're too weak to pull the trigger, what use is it?

8 posted on 02/24/2013 4:30:05 AM PST by tbpiper
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To: Sherman Logan
When a cost, such as a tax or regulation, goes up, a business raises prices to recoup the additional cost and maintain profit margins.

Then the government entities that raise the tax or instituted the regulation turn around and call the businesses "greedy" when they raise prices. And people swallow that lie.

Every time the price of gas goes up, Democrats are out there squealing about the greedy oil companies. It's gotten to the point that everyone thinks oil companies are Satan personified. People refuse to acknowledge that market principles are at work. I make the point that if oil companies are truly greedy, then why does the cost of gas go up and down? Why doesn't the cost always stay high?

22 posted on 02/24/2013 5:58:49 AM PST by randita
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To: Sherman Logan
I get very tired of these claims that taxation, etc. burdens small business and drives them out of business. Businesses primarily collect taxes, not pay them.

Taxation burdens our customers and drives them out of our stores - especially when it is coupled with the climate of economic fear this Administration is cultivating. Probably doesn't effect Walmart or grocery stores quite as much, but anything remotely discretionary is taking a big hit right now.

In the past we might have chalked this up to traditional American "fiscal prudence", but that isn't really the driving force behind the recessionary spiral we are re-entering.

35 posted on 02/24/2013 7:32:25 AM PST by Mr. Jeeves (CTRL-GALT-DELETE)
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