Monday, May 14, 2012

Government versus Small Business Income

From Top 30 Most Profitable Small Businesses During 2008, here is a table of the reported profit margins:

This is a listing of the profit margins for the TOP 30 most profitable.  The margins of profit range from 7.65% to 16.92%.  This is for companies that actually produce something for the moneys received.

At Kansas Dept. of Revenue Publication 1700: All city, county and special jurisdiction sales tax rates is the official listing of sales taxes for the various cities in the state of Kansas.

For Wichita the sales tax rate is 6.3% for the State + 1.0 for the city for a total profit margin of 7.3%.  And for this the government’s only production is legislation requiring that the people pay this fee/tax for what others have produced.

In addition to sales taxes are the road taxes on gasoline sales, property taxes on real property and equipment, licencing fees, registration fees, 911 fees, and the list goes on and on.

But even at 7.3%, this matches or at least approaches the entire profit margin for many small businesses.

If businesses can operate and even grow with this rate, why can the government not do so?  If this is the income level of successful business investors, the income level with which they buy homes and provide for their families and purchase cars and pay taxes and purchase insurance and prepare for retirement, why is this not enough for the government?  Why is there never an end to the talk of increasing taxes?

Do you know the answer?

There is a saying: “Follow the money.”  Indeed, if one follows the money one will answer the question as to why the government never has enough.

The answer is very disturbing, even angering.

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1 comment:

Gary Cepek said...


God's Spirit reveals that the LORD God, preparatory to His fullness of time in sending the eternal Son and Redeemer to take to Himself human flesh, brought forth the "voice in the wilderness crying, 'Prepare the way for the LORD; make straight His paths.'"

As I read your posts over the past few days, I am moved to offer thanks to YHWH for using your voice to cry out clearly and consistently about a wide range of items. Many of these items concern the well-being of the people in our society and those of this dying world. What is distinctive and welcome is that in the spirit of John the Baptizer you direct all who will hear to the One who has clearly revealed Himself in the Scriptures. The inherent effectiveness, clarity, and sufficiency of His Word is truly the only place where those lost and oppressed will be found and be given lasting relief.

God's blessings do indeed accompany you each word of the way.

Gary Cepek