We’re taxed on our taxes
Ross L. Talbott
Glenwood Springs, CO Colorado
I have never in my life been so happy that elections are over.
All the media run election stuff until we are confused and nauseous. I cynically believe that their underlying motive is making money. Many millions of dollars are spent by many organizations promoting a candidate or attacking the opposition.
Truth is often brutalized. The thought process of the individual is said to be 2 percent rational and 98 percent emotional. Is that scary or what?
Doesn’t it seem strange that we can import foreign products that cost far less than the same thing produced in America?
We complain about wealthy people in our country but then spend our money to make the Chinese rich.
We have incredible technology and transportation, yet we can’t compete.
They don’t teach good economics in school, but maybe I can turn on a little light.
Let’s suppose someone has an iron mine. He produces raw iron and in the process pays property tax, fuel tax, employee withholding tax, income tax, and all sorts of fees and permits attached to utilities and other services.
This company then sells its raw iron to, let’s say, a pipe manufacturer. All these fees and taxes are included in the price of the product.
The pipe manufacturer turns the raw steel into a saleable product but they also pay all those fees and taxes.
The pipe is then shipped to wholesalers by trucking firms that also pay all those same taxes including vehicle registration and ton mile tax. That is all added to the price of the product delivered to the wholesaler.
The wholesaler then markets the product to retailers and uses the services of the packaging company and the advertiser, who also pay all these taxes and permits, which they add to the cost of the product.
Remember, nothing new of value is created through this process.
Now the retailer finally receives the product.
The retailer is also paying all these taxes and things such as building permits, sewer fees, water fees, etc., etc.
Then they are obligated to stick on sales tax. All these accumulated taxes are taxed again.
And, by the way, if they still have product in stock at the end of the year, they must pay inventory tax.
We also must add at all levels, the health inspector, the building inspector and the county assessor.
Then remember, that all these companies in the process pay wages to employees, and a good portion of their paycheck goes to pay their vehicle taxes, gas tax, property tax, etc., etc.
All this again is added to the price of the product.
We started out using pipe as the product so now the plumber does a plumbing job and adds his business taxes to the job contract.
You, the consumer, are at the end of this chain and when you pay your bill you are paying all these taxes, fees, and permits for the whole process because they are in the cost of the end product.
Then, guess what? Now you get to pay never-ending property tax on that house you just plumbed.
This process applies to every business that creates wealth.
The farmer raises grain. It goes to the elevators; trucks haul it to the flour mill. The flour is sold to the bakers. The bread goes to the grocer and when you buy the bread you are paying all those taxes added in the process.
Well, gosh, let’s tax the rich because we want to pay more for our bread and our clothes and our cars and everything that we buy.
We continue to penalize the producers of wealth with taxation and over-regulation to the point that businesses are moving to other countries that do not have this toxic spider web of taxes.
Do you begin to realize why a foreign country, i.e. China, can make a product and sell it to us cheaper than we can produce it here at home?
Thomas Jefferson was exhibiting great foresight when he said, “I place economy among the first and most important virtues, and public debt as the greatest of dangers to be feared. To preserve our independence we must not let our rulers load us with perpetual debt. If we run into such debts, we must be taxed in our meat and drink, in our necessities and in our comforts, in our labor and in our amusements. If we can prevent the government from wasting the labor of the people under the pretense of caring for them, they will be happy.”
Welcome to the united debts of America.
Ross L. Talbott lives in New Castle.
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