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Comment on: Logical Party

SEAN HANNITY – UNIFORMED OR JUST LYING?

9 Comments

Actually, that is how it works.

Tax is a cost of doing business, just as much as the cost of a barrel of oil is a cost of producing gasoline. As the price for doing business goes up for everyone when taxes are increased, it is the exact same effect as rising oil prices have on gasoline prices. When oil prices go up, it is not just one or two gas stations that raise prices, it is all of them. When the cost of paying taxes goes up, then every single last company will increase prices accordingly. Any company that cannot pass this cost onto the customer will close its doors or cut back on services or quality, and when that is not possible the proprietors will simply close shop and find something else to do with their money and time, putting people out of work. It really is that simple. You for not understanding this are just simply less than simple.

Minor correction

I think Shaun was talking about corporate taxes not small business.

How it actually works

Tax is an obligation created as being part of a American that we all pay.

So if a tax goes up 2% or 5% or 10%, and an owner doesn't choose to absorb the cost (which IS actually how it works, up to the point it gets excessive and consistent/permanent)a business will close it's doors?

First, tax as a cost of doing business its not - its one's civic obligation. Second, it is not a cost (indirect) in arriving at a Gross Profit Margin, it is an administrative cost. Oil, if you are in the transportation or delivery industry is a direct cost - directly responsible for producing or delivery your product or serv ice.

Usually, and coming from a different direction, if taxes go up, and a business person doesn't live off the premise of "how much will we make this year," and adheres to "how much he has to make," his alternative course of action to be followed is to increase sales (taxes being a percentage of profit).

Your simple "pass the buck" mentality will give rise to the point where a small business will have its doors close because it has priced itself out of the market, and the consumer has learned to do without the product or service.

Of course that will not occur until taxes become a fixed amount and exceed profit. Right now it is a percentage of profit, and even greedy owners will choose profitability as opposed to no business and income.

My position would be

From an historical prospective. When government interefered with healthcare in the mid 80s through DRGs, hospitals were unable to pass the cost off to the patients or insurance....many hospitals closed and /or merged to maintain solvency. The end result was high insurance costs passed off to the consumer to cover the cost of not only the actual care, but to support future health care. I have difficulty with your argument.
I don't necessarily with Sean but do not believe the American consumer is educated or motivated enough to review the issues.

Healthcare differ

Dear Mildred,

First, I do not believe that healthcare should have ever been made to be a profit center. Health care and hospitals are special animals, monopolies by product and service. As part of the Laissez Faire ecomomic model, we run the risk of not being able to afford "health" - the fountain of all life.

Government interfered in the 80's (Reagan)in an effort to forestall the inevitable, and the main problem with pricatizing health - ever increasing costs.

When Hillary intervened, albeit in the wrong way (having others conceed choice to get many more covered), at least she addressed a problem that has since become a crisis after Republicans gleefully cheered defeat of her effort. In my book she's looking pretty smart right now for at least addressing the problem.

Premiums for health coverage have incresased 12% every other year, not to mention the rise in prescriptions and medical services. This is not a good or service that people could live without. It is also to America's benefit to have citizens, workers and soldiers (or potential ones) healthy and fully functioning.

As I hope noted in what I said, busiensses don't pass along true "costs of business" until they become A) excessive and B) permanent.

Hospitals are closing and services cut off because too many are coming in with no coverage and no means of paying the extarordinary costs. St Claire's in Manhattan merged with St Vincents for just such a reason, and St Vincent's on 53rd Street will be closing its doors.

This is why even the medical community is calling for some form of universal coverage.

I beg to differ: Logical

As a result f the Ted Kennedy Plan of the early 80's and I was there....hospitals were forced into DRGs and they started going in the red. By the early 90s they were merging.

Hospitas are not all for profit. NJ does not have propritery hospitals, therefore all profits are returned to the system for future planning and counity service. Proprieteries do not support medical education, therefore the university affiliated hospitals are also nonprofit.Since chariable care is the mission of the Catholic hospitals your argument loses credence. Most hospitals merged for purchase power and to combine benefits and resources. Also, NJ was the pilot state for DRGs and I was a nurse on the floor learning the system then.

Regardless of what the economics books say...the perception of transferring the tax increase to the consumer is what will occur. As i said, first you have to educate the American people before you can argue with them.

Costs go up for both Profit & Non Profit

Dear Mildred,

Costs go up for both entities, whteher for profit, non profit and charity care by the Catholic Church or Charity Care by the State of New Jersey.

Continuous Rising costs are the problem,caused by many sources - pharmeceuticals, leasing companies, equipment, research, education (the cost to educate a new doctor and nurse), and of course litigation.

Until these costs are capped, we will continue to have this problem that can only go in one direction. Suppose the patient was able to pass along the cost of healthcare to their employer (the other way around in a sense). Be darn sure we address the problem then.

Government fixes its costs - grade scales, etc. Its a limited form of socialsiom.

Of course the argument initially is the costs to a small business person which a hospital in no way reflects.

Perceptions, Logical perceptions

Propriteries do not qualify for or provide charity care. Although you argue hositals are not small business that is only our perspective. there are some hospitals in rural ares that are only 35 beds, and they do meet the critria of a small business.
My argument was an example of how goverment intervntion would change perspectives, not change the reality.