Welcome to PatsFans.com

Like some of us always say, businesses really don't pay taxes.

Discussion in 'Political Discussion' started by Real World, May 31, 2011.

  1. Real World

    Real World Moderator Staff Member

    Joined:
    Aug 15, 2006
    Messages:
    27,375
    Likes Received:
    307
    Ratings:
    +839 / 7 / -3

    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 [​IMG]

    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 [​IMG]
     
    Last edited: May 31, 2011
  2. patsfan13

    patsfan13 Hall of Fame Poster PatsFans.com Supporter

    Joined:
    Jan 4, 2005
    Messages:
    25,366
    Likes Received:
    138
    Ratings:
    +369 / 10 / -14

    Of course they don't but the class warriors will continue to fool the rubes.
     
  3. sdaniels7114

    sdaniels7114 Experienced Starter w/First Big Contract

    Joined:
    Jan 2, 2006
    Messages:
    5,738
    Likes Received:
    7
    Ratings:
    +7 / 0 / -0

    This conclusion requires the suspension of the business law that says the higher the price you charge, the less business you do.
     
  4. patsfan13

    patsfan13 Hall of Fame Poster PatsFans.com Supporter

    Joined:
    Jan 4, 2005
    Messages:
    25,366
    Likes Received:
    138
    Ratings:
    +369 / 10 / -14


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

    BSR In the Starting Line-Up

    Joined:
    Nov 7, 2007
    Messages:
    3,021
    Likes Received:
    23
    Ratings:
    +109 / 0 / -1

    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.
     
  6. khayos

    khayos In the Starting Line-Up

    Joined:
    Apr 19, 2005
    Messages:
    3,673
    Likes Received:
    0
    Ratings:
    +0 / 0 / -0

    Raising taxes on the rich just causes them to avoid the taxes. Carveouts, loopholes and shelters.
     
  7. sdaniels7114

    sdaniels7114 Experienced Starter w/First Big Contract

    Joined:
    Jan 2, 2006
    Messages:
    5,738
    Likes Received:
    7
    Ratings:
    +7 / 0 / -0

    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.
     
  8. State

    State In the Starting Line-Up

    Joined:
    Jan 10, 2005
    Messages:
    2,545
    Likes Received:
    5
    Ratings:
    +22 / 1 / -8

    #70 Jersey

    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.
     
  9. PatriotsReign

    PatriotsReign Hall of Fame Poster

    Joined:
    Jan 15, 2007
    Messages:
    27,164
    Likes Received:
    179
    Ratings:
    +511 / 6 / -24

    #18 Jersey

    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?
     
    Last edited: Jun 30, 2011
  10. PatsWSB47

    PatsWSB47 Veteran Starter w/Big Long Term Deal

    Joined:
    Mar 13, 2007
    Messages:
    7,945
    Likes Received:
    96
    Ratings:
    +213 / 1 / -0

    #12 Jersey

    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.
     
  11. PatriotsReign

    PatriotsReign Hall of Fame Poster

    Joined:
    Jan 15, 2007
    Messages:
    27,164
    Likes Received:
    179
    Ratings:
    +511 / 6 / -24

    #18 Jersey

    It's an economic law...but I'm splitting hairs.

    This general rule holds, but only in a free & competitive market. The cell phone/Cable/Internet market isn't that competitive at all.

    Auto insurance is very competitive and look at the result of deregulation in Massachusetts. The costs have gone down if you shop around.

    Gasoline has never been very competitive. Whenever the price goes up or down, it almost appears as if there's collusion. But it's just a function of one singular world market price.
     
    Last edited: Jun 30, 2011

Share This Page

unset ($sidebar_block_show); ?>