Hidden Costs

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Hidden Costs

August 27, 2020 - 20:58
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Let's agree; tax is the result of a law that separates us from our money with punishment for noncompliance.

When the term "tax" is used, it most likely stirs thoughts of income withholding, sales, and property. With the exception of property tax, we see business as the government's 'tax collector' (TC). That is all straight forward.

What ever tax is put on business is paid by all of us. The TC must build into their operation the gathering of monies to pay their taxes. They get it from us OR face going out of business (there is not enough to pay the owners income) / government seizure.

A minimum wage of $15 / hr would be a law and separate us from our money. If an employee is earning $10 now, then the TC must get the additional $5 from us - the customer - by adding to the purchase price (which adds to the sales tax).

Next: Will the employee at $16 want $21 (or even $24 - at a 50% raise like the $10 employee.)? Will Social Security recipients have to pay this minimum wage tax for a year before an adjustment to benefits? Will the employer (TC) find it economically smart to automate the $10 worker's position? ($5 x 2,000 hrs = $10,000/ yr.) Will it be more difficult for the TC to start or expand a small business? Yes times 4.

Inflation occurs - diminished value of savings, rents increase,and Seniors lose on both.

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Here is the way free enterprise is supposed to work. You need to provide a service that someone will pay for with out being extorted. For example, go to technical school, learn a valuable skill, and go out and earn what you are worth. Don't sit back and take a job where the union or the boss or the government tells you what you will be paid, tell them what you will work for. Then when you are not paid what you are worth, you can quit and get a job that will pay you what you are worth.

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