[Except, for MY "purchasing power" to remain constant I have to charge the additional 30% tax to my customers that I didn't previously charge...get it?]
No, you don't.
Show us your numbers. Gross, non-wage costs, wage costs, and your profit. I'll be happy to show you how you DON'T need to charge 30% more to your customers to maintain your own purchasing power.
If you won't put up numbers, then we'll assume you realize your error.
I'll be happy to show you how you DON'T need to charge 30% more to your customers to maintain your own purchasing power.Who's stopping you?
If you won't put up numbers, then we'll assume you realize your error.There is no error. What is it with you clowns and this "error" thing? Did you all go to the lunatic's class of "error" spotting?
I don't have wage costs, the rest is irrelevant (not to mention none of your business) to your assumptions.
Using the same rationale that wage earners get to keep all of the income and payroll taxes that were previously withheld from their paychecks, regardless of what the effect is on their Purchasing Power, the same is true for the business owner.
For small businesses, the taxes on the corporation's profits are passed along to the owners of the business through a K-1 form. This income is shown on the 1040 and is taxed at the business owners' own personal income tax rate.
Since wage earners get to keep their income and payroll taxes, so do the business owners. Do you really think that business owners are going to give their employees their "full" paychecks and not do the same for themselves? They will both need the money to pay the inflated prices that are going to be charged in the market.