“There are some... who argue that in the past, companies have passed on these costs to consumers. We feel that that’s unfair and absurd and the American people will not stand for that.”
-- White Press Secretary Jen Psaki responding to a reporter who says that proposed tax increases would trigger taxes to increase on the 'little guy'.Never in the history of America (over 200 years) has taxes been imposed, and service/companies didn't pass the tax to the consumer/user.
Psaki can talk about this and pretend an alternate universe exists....but companies will assess each tax....form a new business model, and quickly move to up their price.
This lack of economics knowledge? Well....this is why I'd suggest that as people finish high school or college....they take a hundred days and just travel around the country to view reality.
I owned a restaurant business for ten years.
ReplyDeleteMy customers paid:
* all the taxes, including property taxes, payroll taxes, social security taxes, utility taxes, telephone taxes, water and sewer taxes
* taxes on the delivery trucks, taxes on the delivery drivers, taxes on the warehouses furnishing my restaurant supplies, their telephone taxes, their fuel taxes
* business taxes for my business, my suppliers businesses, and all the taxes on the utility companies including their fuel taxes and taxes on their trucks and equipment
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I estimate taxes account for about ninety-seven percent (97%) of the cost of anything.
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Without taxes, a ten-dollar (us$10) hamburger would be around twenty-five cents (25 cents).
A couple of years ago, I made my first trip ever to NY City. One morning, I got up to have a four-star breakfast at the 'up-scale' hotel. Total cost of $38 (a ridiculous amount). But it's like you suggest....various taxes, toll fees, warehouse taxes, fuel taxes...all 'bleed' into the final product.
ReplyDeleteYour assessment is mostly correct, although state by state...that $10 hamburger might actually cost as little as $5 in Texas/Florida, or $12 in California/NY.