Hidden taxes

Have you heard about hidden taxes? Most of us have but don’t know what people mean by the phrase. Here is the basic premise:

Businesses don’t pay taxes. People pay taxes.

Let’s say for, for example, I want to buy a new washer. I go to Home Depot and pick one out (They have the best selection and deals in our area). Now, the parts, labor, gas to transport, utilities to run the store and factory, and mortgages for the same all make the washer cost about $300. But wait a minute; the store has to pay as much in employee taxes as they do in salaries, plus property tax, plus business fees, income taxes, etc. So the store tacks on an extra $50 to the price to cover these taxes. Where else are they going to get the money?

The trucking company that carried that washer from the factory to the store has the same expenses plus gas taxes to pay. Add another $50.

The factory has those expenses too. Add another $50.

How about the parts houses that made the parts, the steel mill that made the raw materials, and the paint company and electronics companies involved in the production of this washer?

There’s our hidden taxes.

By the time everyone tacks on what they MUST in order to pay their taxes, the price of the washer is $500-$600! Then add another 7% sales tax on the way out the door!

I could afford a $300 washer, but I can’t come up with $600+, so I don’t buy the washer. Now the store, trucking company, factory, mill, etc. don’t need as many employees. People are laid off. Now the government is not only not getting those worker’s income taxes, they aren’t buying washers, dryers, cars, or houses either. In fact, because government goody programs allow us to be stupid and not save for a rainy day, (in fact, saving and not using these programs wouldn’t be wise because we would be paying for that “rainy day” twice- once through taxes and once through savings) the government’s expenses go up.

But if the government cuts taxes, the businesses can cut prices, which they will do in order to try to get you to their store instead of their neighbor’s. As prices fall, more working-men can buy more goods, more employees are needed at all levels of business, more income and sales taxes are paid, and the government’s income goes up while their “goody” programs are less used. Plain and simple cause and effect.

Let’s say the business owners pocket their tax breaks instead of lowering prices or giving raises, or hiring more people. What will they do with that money? Put it in their mattresses? No. they will buy a yacht- made by working-men who now have more jobs and more money to spend on goods. Or they might buy a mansion (built by working-men), a limousine (built by working-men), maybe a fancy vacation (using transportation run by working-men and staying at resorts staffed by working-men). What if they just invest it in the stock market? This gives more money to other business to expand their business (hire more workers).

Any way about it, more money for business means more work and more money for the working man and higher living standards for everyone.

We need to CUT taxes, not raise them.