Sunday, November 12, 2017

This Guy Needs a Little Econ 101

Cartoonist Bob Gorrell:
Once more from the top.  Corporations do not pay tax.  Corporations collect tax.  Since the bulk of their sales is to middle class people (because they're the majority of the country), the middle class taxpayers pay the corporations' taxes.  Corporate tax cuts are middle class tax cuts. 

Corporations don't have a penny that wasn't made through sales.  Consider a local "mom and pop" pizza parlor.  Their sales price consists of two major things:
  • Cost of materials and the labor to make it sellable (for example, pizza ingredients plus the labor to make them into that delectable Food of the Gods) 
  • Overhead (for example, electricity for the oven, rent for the building, napkins, other supplies, and taxes/fees mandated by the various government levels that regulate.  Things like insurance payments for workman's compensation, unemployment insurance and an increasingly longer list of fees/taxes.) 
Those are absolutely mandatory expenses that must be covered.  Maybe not minute by minute, but if those expenses aren't covered, the business can't survive. 

Whatever rate the Feds tax at, that's before profit and part of what must covered by price.  That tax is paid by the pizza buyer.  If the percentage of taxes drops, the price of the product can drop, or it can leave more money in the business for expansion.  Ultimately, both of those outcomes are good for the pizza buyer.


11 comments:

  1. There are a lot of wooden headed "progressive" types out there who've never produced a damned thing. This concept is completely alien to them...and that was one of Obama's biggest problems. He COULDN'T understand. President Trump does understand. MAGA

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    1. This concept is completely alien to them...and that was one of Obama's biggest problems. "You didn't build that"...

      As far as I can tell, he never worked at a real job in his life. "Work" is as foreign as living on the moon to him.

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  2. LL is spot on. And there are a whole contingent out there who believe in "free" stuff from the Gov. And from you, if the Gov. can't supply it.

    What "free" stuff is, boiled down to it's essence, is slavery. One group wants another group to work without pay to supply their desires.

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    1. What "free" stuff is, boiled down to it's essence, is slavery. One group wants another group to work without pay to supply their desires.

      I keep pushing this idea to anyone who talks about Free Healthcare near me. Health care is delivered by people based on a lifetime of their education, knowledge, and experiences. If that isn't the essence of who somebody is, what else can be? Demanding someone provide your healthcare for free is demanding the very essence of that person. Pure slavery.

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    2. There is _no_ free stuff from .gov for them to give away. It ALL comes from us.
      .Gov simply collects it from us, and gives it away to those it likes.

      It _is_ slavery, and it is _socialism_. We've been socialist since the 16th Amendment was supposedly ratified.

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    3. correct- but they THINK it comes from gov. as free stuff, OR, they use that thought as moral cover to hide behind- although from things I hear lately, it seems the thought of hurting the working man is almost as appealing as getting the free stuff.
      I cannot remember where I read it, but there was a insightful little definition of the differences between greed, envy, etc-
      Some people see a guy with stuff and want stuff for themselves.
      Some want to take the other guys stuff.
      Some want the other guy to lose his stuff, even if they can't have the stuff themselves.

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  3. "Politics" is humans relating through threats of violence. "Self defense" is when an innocent person prevents an attacker from forcing them to act to the attacker's benefit using threats of injury. The other party, the attacker, is doing "government". Doesn't matter how numerous the attacking gang is. Can be a gang of 10 men on the street, can be a gang of 150 million at the "polls", which are a job fair to hire lots of gangs of 10 men. Why do you consider politics "legitimate" when the gang size reaches a few thousand? Does this approach have a track record of doing good?

    Governments are falsely sold as being nearly entirely agents for self-defense, when they're nearly entirely attackers. Look at the pie chart of federal spending at the back of a 1040 tax form instruction booklet. What percentage of that spending goes to proxies for self-defense? The military is used to do colonial imperialism, which makes the middle class poor and motivates counterattacks like 9/11. Lindbergh was right about "isolationism" (aka peace) being the correct approach. He knew personally how difficult the Atlantic was to cross, how good of a defensive moat it was.

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    1. 1) Lindbergh was pro-Nazi, and was "isolationist" because he didn't want America to interfere with the goals of the Third Reich.

      2) Our military never caused 9/11, or any of the terrorism perpetrated by the muslims. That is the thinking of the Left. While the death of a loved one by U.S. bombs or ground forces may have motivated some individuals who would otherwise not have strapped on a "mass-murder" (NOT "suicide", that isn't its intention) vest, the other 99.9% of the violence is perpetrated by the qur'an, hadith, and sura - by the imams teaching this fake religion (cult + ideology) in the mosques and on-line.

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    2. Lindbergh was pro-Nazi, and was "isolationist" because he didn't want America to interfere with the goals of the Third Reich.

      What?? Wait a minute. Which goals of the Third Reich? I believe there was a lot of productive/constructive national pride stuff in that ideology package. It wasn't only 'let's remove this group we're scapegoating'.

      Our military never caused 9/11, or any of the terrorism perpetrated by the muslims.

      I don't believe a Western intelligence agency paid hijackers' pilot school tuition. On the other hand, the Republican political strategy document of the time said Republicans would win a lot of elections if they could be seen to act militarily. Therefore the military beat on wasp's nests until the US got stung.

      the other 99.9% of the violence is perpetrated by the qur'an, hadith, and sura - by the imams teaching this fake religion (cult + ideology) in the mosques and on-line.

      What's the difference between Allahu Akbar and Spanish conquistadors vs. Aztecs? Or the Spanish Inquisition? By the time of the British Empire, then Manifest Destiny, Christianity learned to have better optics. 'It's the White man's burden to civilize the natives, rather than decimate them. Oops, golly, they still got removed, I guess we'll just have to farm their land.' They didn't have bomb vests, they had smallpox blankets. Everybody loves a winner. Are you objecting to Islam because it's a loser?

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    3. fake religion

      The world's first multinational corporation claimed: 'We have the best understanding of reality, we know the Earth is in the center of the universe, and you better follow our advice or it's doom. Galileo, shut up.' Today it's the same trick. 'We have the best understanding of reality, fossil fuel use is ruining the climate, you better follow our advice or it's doom. Deniers, shut up.'.

      Evidence is an observed effect which can be triggered on demand by people who don't believe you. The idea is to permute the experimental conditions wildly, so the effect only happens after the trigger, and no one can find a smaller trigger or a different trigger. When the best and brightest can't contradict the cause-effect link, we call that result "proof". It's only the best guess, but humans can do no better. When the effect is rare, you do the experiment a zillion times to get enough replications, like the high-energy physicists do.

      I can't point to evidence for extraterrestrial aliens who loiter in the sky and interfere in human events. Not flying in round silvery spaceships, and not sitting on a cloud. No afterlife where human brain backups are run virtually in the cloud. This is just a made-up backstory for why certain people need to be in charge. Government is just another fake religion.

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    4. “the military beat on wasp's nests until the US got stung.”

      A naïve conclusion based on a total lack of knowledge of recent and ancient history. The War between Islam and everyone not Islam has been going on for 15 centuries. The Republicans didn’t start it, didn’t make it worse and the U.S. didn’t deserve to be “stung”. This is an ongoing war, we cannot bargain our way out of , we cannot immigrate our way out of it and we cannot conventional war our way out of it. This will absolutely end in a nuclear war. If our leaders are smart enough we will hit them while it would be relatively easy to do. But they are not so we will do it AFTER they hit us. With their nukes (very likely made from the Uranium the traitor Hillary and Obama gave away).


      “What's the difference between Allahu Akbar and Spanish conquistadors vs. Aztecs?”

      That is stupid. We are in a war with Islam. Silly comparisons between 500 year old issues is irrelevant and just plain stupid.

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