Businesses and Hidden Taxes: A Transparent Tax System Could Increase Demand for Products of Export Businesses

Additional business oriented observations.

My reasons for believing that a transparent tax system could increase demand for export products is the same as for why I believe sales of domestic goods at home would increase.
Namely, because prices would be lower without the cost and markup of hidden taxes built into the prices of export products.

Prices of stuff made for export currently include the cost of hidden taxes.

Companies that make stuff for export to foreign countries have hidden taxes built into the prices they charge for the same reason all other businesses currently have hidden taxes built into their prices.

This means that the prices business must charge for these export products are forced higher in the global market economy we are living in by these hidden taxes.

Some foreign governments give tax breaks and provide other government assistance, that help companies in their countries offer lower prices.

So with this in mind, does it really make sense for the United States Government to have and promote tax policies that include using hidden taxes to make it even harder for our export oriented businesses to complete?

As shown by the financial model above, prices of export products would be lower not only by the amount of the hidden tax no longer included in the prices, but also by the effect of the markup on those same hidden taxes.

Removing these hidden taxes would allow prices to be lower without lowering employee wages or business profits.

In the financial model above, I showed how removing hidden taxes would allow prices to be lower, without lowering wages, or the profit margin of businesses.  Also, as stated above, when these lower prices result in an increase of sales of export products in foreign countries, that could also result in the same increase in actual dollar profits that domestic businesses have the potential to experience.

Lower prices would help make export products more price competitive.

By helping to lower the prices of export products through removing all effects of hidden taxes, there is the very real potential for those same export products to be seen as being more price competitive.  Why?  Simply because the current hidden taxes required of business by government would no longer be forcing prices of American made stuff higher.

Extra jobs that could be created as a result of increased sales of export products would increase consumer spending at home.

Now with prices lower for export products, (assuming the change I’m proposing is written and passed into law by properly elected officials), then more competitively priced export products could result in more products being sold in foreign countries.

And if more of our export products are sold in foreign countries, that could create the potential for more jobs to make the products needed by the increased demand.  These extra jobs would then result in more people being employed and earning money that they could use to buy more stuff here at home.  And the more stuff they would buy would result in more transparent taxes paid into government as a result of those increased taxable consumer purchases.

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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