Taken from an e-mail.

 

 

 

 

Try to follow I will keep it simple. Joe has a hot dog stand. He sells hot dogs for $1.00. Of this $1.00, 10 cents is Joe's profit.

 

The city decides to place a 10 cent tax on the sale of hot dogs. Well Joe, not being as dumb as the city leaders knows that he can no longer sell hot dogs for a dollar each.

 

Joe was makng a 10% profit before, so he increases his price to $1.11. But then realizes that due to the increase in price he is now selling fewer hot dogs. So he increases price to $1.15 each trying to stay in busnisss. This seems to work but Joe notices certain poorer customers have stopped coming around.

 

Of course the city is now receivig less hot dog tax because Joe is selling fewer hot dogs. Of course the city leaders blame this on joe for increasing his prices and increase the hot dog tax to 15 cents. and it all starts over.

 

1. BUSINESSES DO NOT PAY TAXES THEY COVER EXPENSES, INCREASE IN TAXES RESULTS IN INCREASE IN PRICE.

 

2. THERE IS A TIPPING POINT, IF THE TAX INCREASES THE SELLING PRICE BEYOND THE MEANS OF CUSTOMERS--THE BUSINESS WILL CLOSE.

Meanwhile, people find somewhere cheaper to buy hot dogs and a new hot dog stand usually sprouts up also.

^ - Maybe, maybe not. There are a lot of barriers to entry for a new company. Taxes are one and they are a barrier for any company. Regulation in general is another. Too much red tape you just chuck it and say its not worth it. And risk/reward financially. If the margin for hot dogs is pretty fixed and there is not much upside reward then putting up the capital (new store, cart, etc.) is not worth it. Go apply the capital someplace else or let it earn 1.5% in CDs. And finally, if another business failed there there is now extra reason to avoid or look real, real close before jumping in where someone else failed.

 

Government at all levels needs to lessen the barriers.

Meanwhile, people find somewhere cheaper to buy hot dogs and a new hot dog stand usually sprouts up also.

 

...and then the two small independently owned hot dog stands are eventually forced to compete with each other in a pricing war until Walmart opens a hot dog stand 10 miles away, with cheap hot dogs made from 100% pink slime sold for pennies on the dollar. The people are so sick of paying more for hot dogs at the independently owned stores (which have increased their prices because of over taxation) that they go eat the complete crap they are being sold at Walmart's hot dog stand - and America gets fatter.

 

Eventually, the independently owned hot dog stands close due to inability to compete with Walmart, and there go any decently paying wages to owners and managers that had once been produced by those two hot dog stands, while Walmart pays its employees minimum wage.

...and then the two small independently owned hot dog stands are eventually forced to compete with each other in a pricing war until Walmart opens a hot dog stand 10 miles away, with cheap hot dogs made from 100% pink slime sold for pennies on the dollar. The people are so sick of paying more for hot dogs at the independently owned stores (which have increased their prices because of over taxation) that they go eat the complete crap they are being sold at Walmart's hot dog stand - and America gets fatter.

 

Eventually, the independently owned hot dog stands close due to inability to compete with Walmart, and there go any decently paying wages to owners and managers that had once been produced by those two hot dog stands, while Walmart pays its employees minimum wage.

 

 

That's true. Walmart has destroyed more small businesses than the government. Walmart sucks.

 

 

*sighs.....hits power button on phone. Takes keys out the ignition and puts phone and keys in pocket. Grabs front pocket wallet and puts in the other pocket. Steps out of car. Hits keyless remote to lock the car and proceeds into Walmart for soap, deodorant, Smartfood White Cheddar popcorn, peanuts and Raspberry Simply Lemonade.

I love hot dog stands.

I love hot dog stands.

 

:lol: Me too. I actually volunteer to deal with any project documents at the City Of Cincinnati or Hamilton County planning & zoning and building departments just so I can stop and get lunch at one of the hotdog stands downtown. (Anyone who has had to deal any of those offices should understand how big a deal that is.) I go with with a brat with sauerkraut and mustard, or a kielbasa with onions, peppers and mustard.

 

Mr. Gene's on Beekman Street and Senate at 12th & Vine aren't exactly hot dog "stands"....but man oh man...they sure know what to do with cased meats.

There is a hot dog stand that sets up shop in Mt. Adams and it is absolutely fantastic. It's typically there Thursday night through Saturday night & it is excellent. I think it's called Mr. Hortons, but I could be mistaken.

:

 

Mr. Gene's on Beekman Street and Senate at 12th & Vine aren't exactly hot dog "stands"....but man oh man...they sure know what to do with cased meats.

 

One of Cincy's best kept secrets ! Nothing better anywhere. Surely you've had one of Mr. Gene's shakes also?

One of Cincy's best kept secrets ! Nothing better anywhere. Surely you've had one of Mr. Gene's shakes also?

 

Ohhhhhhhhh yeah!

Funny how the left wants to tax the corporate folks into oblivion... Maybe they are not smart enough to realize that they are the ones who will be paying for the extra taxes.. Not the corporations..

Funny how the left wants to tax the corporate folks into oblivion... Maybe they are not smart enough to realize that they are the ones who will be paying for the extra taxes.. Not the corporations..

 

...but it's the right that pushes to give corporations every possible advantage to create big business and "stimulate the economy", while Joe the hot dog salesman is left to have his business crushed by corporate America.

 

Mom and pop businesses made this country. I understand free commerce and capitalism, but the big box stores of the world are doing more to destroy the American dream rather than help it.

...but it's the right that pushes to give corporations every possible advantage to create big business and "stimulate the economy", while Joe the hot dog salesman is left to have his business crushed by corporate America.

 

Mom and pop businesses made this country. I understand free commerce and capitalism, but the big box stores of the world are doing more to destroy the American dream rather than help it.

...or maybe they could just lower Joe's taxes.. What a novel idea.

...or maybe they could just lower Joe's taxes.. What a novel idea.

 

And then big business will complain. Regardless of what is done to help anyone whether it is big business, small business, middle class, the poor or the rich somebody is going to complain.

 

There is so much complaining that I don't know who or what is right anymore.

And then big business will complain. Regardless of what is done to help anyone whether it is big business, small business, middle class, the poor or the rich somebody is going to complain.

 

There is so much complaining that I don't know who or what is right anymore.

Just check with me, I got your back on this one.