Flat tax?

[NEO]

You do not pay taxes if you operate a business- you collect them. Taxes are a cost included in your budget just like employee wages. If your taxes go up, your outside costs go up like utilities and staplers, and you have no power to increase pricing... then those taxes will either come out of your pocket or your employees' pockets.

This is why replacing the income tax with a consumption tax makes alot of sense. The collection occurs at the same point and comes from the same sources... it is just far, far more efficient.

You have me curious now though... I am wondering what kind of business someone who believes like you do could actually run successfully. It has to be one sheltered in some way from market reality.

I am all for a consumption tax as long as it doesn't get crazy and unfair. If it is simply a flat sales tax across the board I am ok. If it is 25% on cigars and high end watches and items considered luxury than I am not.

I like your marginal idea above ... but can you imagine the level of bureaucrats this would create. In a perfect world though, I like your ideas.

 

[NEO]

You're also completely correct with taxes are in your budget. I look at the beginning of every year and base my annual cashflow on my over all expenses including predicted taxes. If my budget does not meet my net profit needs than I have to adjust the budget. It is a simple growth versus cost issue. If it is not worth the cost to grow my business I let the business stay nuetral. If they lower my taxes or the cost becomes worth the growth I then grow my business.