Real World

They pass them on to the consumer.


So the gubmit levies a tax on Verizon thinking it's "revenue" they can waste on bloated salaries and Aunti Zuchini, and Verizon moves and passes the cost onto the consumer. So who really pays when a business is taxed? In this instance, it's clearly the consumer.


As a side note, I'm looking at my Verizon bill and am always amazed at how they find ways to tack on charges. I guess they all do, but I'm going to list them for the fun of it.

Taxes, Governmental Surcharges, and Fees

1) Federal Excise Tax - .19
2) MA Sales Tax - $3.43
3) 911/Disability Access Fee - .75

Verizon Surcharges and Other Charges

4) Federal Universal Service Fee - $1.89
5) Federal Subscriber Line Charge - $6.35
6) Verizon Property Tax Recovery Charge - $1.98
7) License Fee - .11
8) PEG Grant Fee - $3.73

Total: $18.43

This also works as a decent illustration of "nickel and diming". Eight different slashes to the throat for a "total" taxes and fees of a whopping $18.43

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"The most difficult subjects can be explained to the most slow-witted man if he has not formed any idea of them already; but the simplest thing cannot be made clear to the most intelligent man if he is firmly persuaded that he knows already, without a shadow of doubt, what is laid before him."
Leo Tolstoy, 1897

patsfan13

Of course they don't but the class warriors will continue to fool the rubes.

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"Some guys play in all-star games, some guys don't. I don't know who picks all those all-star teams. In all honesty, I don't know who picks the combine, for that matter," Belichick said. "How does (Miami-Ohio offensive lineman Brandon) Brooks not get invited to the combine? How did Vollmer not get invited to the combine? I don't know. We can't really worry about that. We just have to try to evaluate them the best we can."

sdaniels7114

This conclusion requires the suspension of the business law that says the higher the price you charge, the less business you do.

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Give a man a gun and he can rob a bank, give a man a bank and he can rob everyone.

patsfan13

Now when the gov is extorting $$$ from your competitors.

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"Some guys play in all-star games, some guys don't. I don't know who picks all those all-star teams. In all honesty, I don't know who picks the combine, for that matter," Belichick said. "How does (Miami-Ohio offensive lineman Brandon) Brooks not get invited to the combine? How did Vollmer not get invited to the combine? I don't know. We can't really worry about that. We just have to try to evaluate them the best we can."

BSR

You think people will stop buying phones because they are being charged an extra $1.26? Sure, eventually it will reach a point where people will stop buying more phones when the price gets too high, but the point still stands that this tax was passed onto the consumer.

khayos

Raising taxes on the rich just causes them to avoid the taxes. Carveouts, loopholes and shelters.

sdaniels7114

Are all phones the same?
What about plans?

Price largely dictates what people buy, the higher the price, say because the supplier passed on the cost of a new tax, the less the buyer purchases.

Its cute the way laissez-faire Republicans claim that the market shouldn't be regulated because its way too complex, yet when it suits them the things that make it complex are suddenly as simple as can be.

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Give a man a gun and he can rob a bank, give a man a bank and he can rob everyone.

State

Milton Friedman famously said, "There's no free lunch."

He's right.

Costs passed onto the business community by politicians, often lawyer politicians, are passed onto consumers.

Why is this so hard to understand?

But unlike taxes, which are coercive, companies provides services that consumers can voluntarily choose to pay for.

More people should learn of the great libertarian thinker Lysander Spooner of the 19th century.His distinction between the two categories is typically not properly understood.

PatriotsReign

For all the dopes who think, "we don't pay enough taxes" because all they look at is income tax, take note! I have written ad nausea that in order to properly asses America's tax structure, we'd need to add up ALL FORMS OF TAXATION.

So you pay $18.43/month in taxes and various gov't fees JUST for Verizon. So that's an extra $221.16 you pay annually for your cable service.

Say we spend $50/week on gasoline...that results in $2,600 annually on gasoline. I wonder how much of that is hidden taxes. My guess is at least $600.

Stop all forms of hidden taxation!

I'm dead serious about that statement. I believe all Americans deserve to know EXACTLY how much we truly pay our gov't each year.

Anyone agree?

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"No one walking this earth knows what is truly righteous"

PatsWSB47

I usually don't get into these economic threads because I have little to offer in way of expertise. So here's my novice observation:

If businesses are passing along the majority of new tax and regulation costs on to consumers, then consumers have no choice but to pay up or do without. AT&T, Verizon et al maintain their profit margins regardless of new taxes on them. They all pass all of it along because no one will switch carriers if for example At&T only passes along 50% of the new cost and Verizon passes along 100% of it. In this hypothetical case the $1.26 increase for Verizon is countered with a 63 cent increase by AT&T. 63 cents won't make anyone change. At&T probably knows this so they increase the whole $1.26 anyway because even that isn't enough to make the hassle laden switch full of penalties and delays that comes with it.

No new taxes on those making $250k or less is just a slogan. It just comes in other forms.