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Thursday, January 11, 2018

Every $1 saved by Them is $1 More Paid by Us

~ General Forrest on the $100 bill.. If Dr King can have a dream, so can we..

Yesterday, Trump in a semi-veiled swipe at Amazon and ultra-liberal billionaire Jeff Bezos (who also owns the extremely anti-Trump biased Washington Post) said:

"The internet - they're going to have to start paying sales tax because it's very unfair what's happening to our retailers all over the country that are put out of business"

Retailers are not suffering because of Amazon..  Retailers are suffering because they make absolutely no effort to be competitive, especially those corporations that also have an online presence
We explained this last month.. Time and time again during the Christmas season we'd get coupons for various stores through email and it was for online only..  Go to the local store - pay full price..

Now why would anyone do that unless it was last-minute shopping?

So local store traffic dies down, the corporations complain about a situation they create (most stores' inventories are also a fraction of what's on their online site so their bricks n mortar locations are merely places to return online orders) and then bellyache about Amazon
Amazon collects sales tax on products it sells directly to consumers, but doesn't bother so much when it comes to sales made on its platform by third party merchants.

Indeed, the trend has already started at the state level where last June, South Carolina filed a complaint against Amazon  and the company agreed in November to take on additional third-party tax burden in its home state of Washington.

So let's get this straight..   Trump pushes hard for a tax cut that will knock down the corporate tax rate to 21% from 35% and yet is threatening additional taxes for internet based companies??

Amazon's yearly sales are around $160 billion..  That's $160,000,000,000

At 35%, they were paying $56 billion in taxes.. 

At 21%, based on $160B, they will be paying $33.6 billion which is a savings of $22.4 billion thanks to Trump.. 

Think that profit keeping will translate to new jobs?
If there ever is a national internet tax or postal rates climb, guess who pays? 

We pay it..  the average folk..  Amazon and companies like them are simply  the tax collectors..

So is Trump 'helping' working people, especially third-party vendors by demanding they be taxed and we the people pay more for our goods while Amazon itself saves billions annually?!

And that's how politicians do it (and yes Trump is one) - they give countless financial breaks to the wealthy and the corporations while the financial slack is always picked up by the everyday person
The thing is Democrats do it too which is why they're so heavily focused on social issues and identity politics since they know they're just as bankrupt on fixing the economy, lowering the debt and helping the middle & lower classes just like the GOP

So there's really no political party to turn to especially on a national level since the #1 purpose of the modern President regardless of party affiliation, is to make policy to help corporations make more money here and abroad

It's been quite a strange last 30-45 days for us in terms of covering Trump and the decisions he makes..   Overall we like him but we're not laissez-faire 'let free market dictate everything' fiscal conservatives and we never have been..
We knew we wouldn't 100% agree with him especially on economic issues but there's a bit of overload we're feeling in terms of how much he's annoying us lately..

The way people on both sides of the political aisle deal with budgets, taxes and deficits reminds us of a family of four where the mom and dad spend more than they bring in with their salaries

And instead of budgetary belt-tightening and prioritizing, they deal with cash shortfalls by forcing their teens to contribute more and more of their after-school job money to make ends meet...
One day people will understand how bad things really are and how no one in any position of power really wants to do what is needed to make things more equitable while still staying a capitalist free-market society

Until then, its business as usual..