Businesses and Hidden Taxes: The Effect of Hidden and Transparent Taxes on Prices

If you are or have been a business owner or manager, and had decision making involvement with the finances of a business, then you already understand that the taxes business pays is required by government.


You also have a basis for understanding that these taxes are simply an added cost of doing business, and that the money used to pay every one of those taxes comes from the customers of a business as part of the prices charged.

Those taxes are not hidden to the business that is paying them. They are hidden from the customer of that business because they are included with the price, the same as all other business expenses.

The taxes that are hidden from a business are the hidden taxes that are built into the prices that one business pays to another business for the stuff a business must buy.  This applies both to resale purchases and the purchase of consumables such as cleaning supplies.

For example, a small neighborhood retail convenience store sells items to their customers.  The stuff that little business sells was purchased from one or more businesses who are referred to as suppliers.  These suppliers also have expenses and taxes they are required by government to pay.  Those taxes are hidden inside of the prices they charged to the little neighborhood convenience store.

If a supplier is selling to a big retail type national chain store, there would still be hidden taxes included in the price.  Why?  Because businesses, all businesses, are at least required to deduct payroll taxes from their employee wages and pay the additional matching payroll taxes, plus they are also required to report and pay taxes on their profits.  So, every business, whether it sells direct to the consumer, or to other business in some type of supplier status, has hidden taxes built into their prices, which are ultimately passed down to and paid by the consumer who is the final one to actually buy and use that products and services.

Thank you for taking time to read and ponder my opinion on this topic.
An Opinion Article by Dave Kemper
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It has been said that: "One definition of insanity is to do the same thing, the same way, over and over and over again, each time expecting to achieve a different result."
Therefore, we must either CHANGE the way we live, or we bind our future to our past as if with CHAINS.
"I do not consider myself to be better than anyone else.  But I do believe in exercising my right to not stay stupid."

David W. Kemper, Author
© Copyright 2014 by David William Kemper.  All right reserved
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