Monday, July 7, 2014

Consumers and Hidden Taxes: Everyone is a Consumer

Everyone is a consumer because everyone consumes.  As you continue to read I will explain why I have chosen to start out talking about consumers.  I will also explain how and why this is important to the topic of hidden verses transparent taxes. Consumers are also customers of every business they buy their consumable stuff from.  Therefore, consumers are also customers.


What is a Consumer?

According to Wikipedia, “A consumer is a person or group of people, such as a household, who are the final users of products or services.”

For example, when a family buys food at the store, takes the food home, prepares it and eats it, they are consuming that food.

By way of contrast, a restaurant buys food from a supplier, takes that food to their place of business, and uses it to prepare the menu items they sell to their customers.  In this case, the business purchased those food items for “resale” or to be used as part of what will be sold to the customers of the business.  The customers of the restaurant consume the food they buy and eat.

Employees are Consumers

Employees consume the foods they eat, they consume the fuel used to drive to and from work, they consume the electricity they use to light their homes, and so forth.

They are employees in the sense that they were hired by a business, or other organization and work for some type of wage, salary, or commission.  Yet they are also consumers in the sense that they buy and consume products and services.

Businesses are Consumers

The owners and managers of businesses are consumers in the same sense that their employees are.  They buy food, fuel, and other items that they, and the rest of their respective household members consume, or use up.  Businesses are also consumers in the sense that they also buy at least some items that they do not include in the products or services they sell to their customers.

For example, have you ever walked into a store or restaurant and saw an employee of that business doing cleanup, such as when you see a sign saying the restroom is closed for cleaning.  Well, the cost of those cleaning supplies is an example of something the business is consuming.

As I stated earlier in topic 1.a, when I presented a definition of what a consumer is, a business that buys food items to be part of their menu, are purchased for resale, while cleaning supplies purchased by the same business are not purchased for resale, they are consumed by that business.

The retired are Consumers

Those who are retired also consume the foods they eat.  They consume the fuel used to drive to and from the store, a medical appointment, or a vacation spot.  They consume the electricity they use to light their homes, and so forth.  Just because they are retired, doesn’t change the fact that they must still buy and consume certain basic items as part of continuing to live.  The retired are therefore also consumers.

Government is also a Consumer

Government offices must buy and use basic supplies such as paper and cleaning supplies for use in their offices.  Government also buys and uses electricity for lights.  It buys and uses fuel for the many government owned vehicles we all see driving around with “for official use only” signs on them.

In each of these ways, and potentially others that could be listed, which would only add extra detail to the point, government is also a consumer.   All levels of government from the federal level, down to the smallest local government entity are also consumers.

Thank you for taking time to read and ponder my opinion on this topic.
An Opinion Article by Dave Kemper
                   _________________________________

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
No part or portion of this publication may be modified in any manner without the express written permission of the author.  Quoting from this publication is allowed on condition that the name of the author and the name of the publication are included.

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