A Tax Rebellion is Brewing

Fair Tax Nation ^ | March 10, 2010 | Ken Hoagland

[Willie Green]

No business in their right minds would absorb the taxes levied on their income and the associated compliance costs. Those are all costs they incorporate into the price of everything we buy.

• In a competitive free market economy, price is determined by supply and demand. Sellers cannot simply "pass along" their costs.
• Furthermore, sellers cannot incorporate their tax obligation into their price because they do not know what their tax obligation is until AFTER they determine whether or not they've made a profit.

  Of course you're dumb as a rock, so you probably don't understand this.

[M Kehoe]

Good evening.

Your first point is obviously correct. Your second point, quite frankly, sucks. Businesses always figure tax consequences into pricing. So everyone in the market place will act accordingly.

Know that I still love ya. I look forward to your response.

5.56mm

[Willie Green]

Businesses always figure tax consequences into pricing.

Wrong-O....

They have no way of knowing what they're tax obligation will be because they do not know if their sales volume will place them above their "break even point." If they make a profit, then they have income tax obligations. But not if they operate at a loss.

And since they have no idea what their income tax obligation will be, there is no-way to pro-rate it into their cost structure prior to the sale. If they try it that way, a competitor will undercut their price with a bid that steals away the sales volume.

[M Kehoe]

And since they have no idea what their income tax obligation will be,...

Sure they do, at the very least the capital gain tax rates, what ever that may be at the time.

If you don't figure that, you have no idea what your ROI will be.

5.56mm

[Willie Green]

If you don't figure that, you have no idea what your ROI will be.

In a competitive market, you are NEVER guaranteed ANY ROI at all.
That is why it is foolish to pad your price with "costs" that you may not incur. The competition will undercut you and push your sales volume below the break even point.

Then you'll be a LOSER with no income tax obligation because you LOST money.

[kitchen]

You've never owned a retail business, have you?

[Sequoyah101]

Agreed, the only way to change behaviors is to associate a consequence with it. In some cases, the more severe the consequence, the less the suffering for all involved.

[AFreeBird]

...ripped out by the roots and replaced!

[Man50D]

* In a competitive free market economy, price is determined by supply and demand. Sellers cannot simply "pass along" their costs.

* Furthermore, sellers cannot incorporate their tax obligation into their price because they do not know what their tax obligation is until AFTER they determine whether or not they've made a profit.

You better tell that to the men who founded Americans For Fair Taxation. They were or still are businessmen About Americans For Fair Taxation (FairTax.org): who realized, along with a team of 80 economists, what effects corporate income taxes have on the costs of all goods and services.

Of course you're dumb as a rock, so you probably don't understand this.

I suppose you think these businessmen and economists are dumb as rocks.

[Man50D]

You've never owned a retail business, have you?

The men who founded Americans For Fair Taxation have been business leaders for years. See post #29. Please tell me what you know about passing along corporate income tax and associated compliance costs that they and the team of 80 economists don't know.

[GGpaX4DumpedTea]

“Those in DC are absolutely CLUELESS as to how close this Nation is to revolution.”

Revolution on taxes and aimed at IRS, revolution on personal health choices re supplements & alternative and aimed at FDA, revolution on immigration, revolution on freedom and aimed at Congress, Executive, Judicial. It is time to take back America.

[Axeslinger]

I think we need to take the feds out of the tax collecting from private citizens business altogether.

I think we should repeal the 16th Amendment and then have the feds collect their tax revenue from the individual states, rather than from the individual citizen. Two bonuses to this...a state could then have any tax system they want...fair, flat, sales...whatever. The best system would rise to the top and other states would emulate it. Also, the costs of the benefits reaped by a state would not be spread out over the entire nation. If North Carolina wants to get 100 billion from the Feds for bat guano research, the citizens of NC can get taxed more heavily by their own legislature and the state would then pay that money back.

Naturally, there would by some federal expenses that would be spread out over all 50 states (eg. military spending)

[Principled]

FAIR tax, yes.

FLAT tax, no.

Right on.

[Axeslinger]

bump for later

[Little Ray]

Why? Almost half the nation isn’t paying taxes. Ya think they’re going to revolt against a system allows the Feds to rob others on their behalf or allow a system (like the Fair Tax) to be instituted that might actually force them to pay something approaching their fair share of taxes?

Its just wishful thinking.

[Man50D]

Why? Almost half the nation isn’t paying taxes.

Everyone who makes purchases is paying income taxes. Corporations have taxes levied on their income. Those taxes and the associated compliance costs are costs companies pass onto the consumer at each stage of production in the form of higher prices. People don't object because it's not transparent.

[Little Ray]

Right. Just like the idiots who think their tax refunds are “money from the government.” They’re not going to complain; they’ll even defend the current system.