Posted on 09/27/2004 2:41:31 PM PDT by LowCountryJoe
There is no such thing as "imbedded" cost.
That is a marxist concept that wrongly assumes that companies merely "pass along" all costs and expenses to the consumer.
It is made worse by the false assumption that corporate income taxes are a "cost" when they are actually a confiscation of a portion of the profits (if any) that can only be calculated AFTER costs have been subtracted from revenues.
The "imbedded" arguement is based on absolutely bogus and fallacious theory.
Because of "pricing shifts", and the dollar declines to purchasing power parity with the peso, rupee and yuan, The American standard of living will also decline to the squalid poverty levels of third world nations like Mexico, India and China.
THAT is the outcome of your pathetic "tax reform".
Once again you have put your idiocy on display for all to see.
Once again you have put your idiocy on display for all to see.
You can't dispute the facts, so you resort to name-calling.
BTW, how is your bill coming to replace corporate income taxes with tariffs?
2nd request for an answer.
All costs of producing a product are imbedded in the product or the company wouldn't make any profit. Calling this concept "marxist" is simply absurd when almost the opposite is true.
Which happens all the time in a capitalist market economy.
QED
Businesses fail all of the time too.
Yet NRST shills insist that's the way it works in order to foist their convoluted scam on the American People.
You completely miss the point. A company that fails to make a profit goes out of business. A company that exists and is profitable is obviously embedding their costs into there products.
This isn't a rocket science.
It isn't rocket science, but it sure is a mystery to you marxists.
NO IT IS NOT A GREAT IDEA
GO to Canada and ask anyone there how they feel about their GST
they hate it with a passion usually found only in liberals
What I said was that you had, once again, put your idiocy on display for all to see and I will stand by that remark.
Any company which does not recover ALL it's costs, on anything other than a short term basis, will soon be an EX company. Most folks grasp that quite readily but YOU refuse in order to continue with your demagoguery.
Price is determined by supply and demand. Profit equals the price of the product minus the cost of the product. A company can not make products and sell them for less then the cost of making them, which includes taxes, and still stay in business. That isn't marxism, that is capitalism.
We have been over this ground a hundred times over the years and Willie STILL doesn't get it. Probably because he simply doesn't WANT to get it.
If Bush found a way to imply putting the IRS out of business permantly the whole debate would take on a different slant.. Remove the IRS; the democrat party would be naked... still dangerous but naked.. course ever democrat, RINO and other so-called moderates would fight that reality like the bubonic plague..
"There is no way the company could know what their tax obligation would be beforehand because market pricing does not guarantee a profit will be made."
Taking your logic to its conclusion, there is no way that a company could ever do a budget, since there are no guarantees that ANY budget assumption will be realized. Companies would just say to their investors "wait until the end of the year, and we will tell you what our financial performance has been. Don't expect us to give you or the market any predictions."
Take a look at a corporate income statement sometime,
corporate income tax obligations are NEVER included as part of "cost of goods sold".
What you WILL see is "Profit Before Income Taxes" and "Profit After Income Tax"
Corporate income tax is merely government confiscation of a portion of the profits (if any) that are earned, they are NOT a "cost" that can be "imbedded" and "passed along" to the consumer.
QED
Taxing consumption and not production is an ECONOMIC wet dream!!
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