Tuesday, April 23, 2013

Taxes: Google No, Users Yes

While the rest of us are coming to grips with the horrors of the suspicious bombings in Boston, the politicians are business pushing through things they cannot otherwise: gun seizure, more spying more taxes.

Taxing the internet, the last free market in USA, has long been a goal, and we're getting there.

In the meantime, the "Google pays not taxes" flash is playing out, this time in the UK.

But in an interview with the BBC, Mr Schmidt defended his company’s practice, suggesting that its contribution to the UK economy was more important than the tax it paid to the Exchequer. “We are investing heavily in Britain,” he said. “We power literally billions of pounds of start-ups through advertising networks and so forth, and we’re a key part of the electronic commerce expansion of Britain, which is driving a lot of economic growth for the country. So from our perspective, I think, you have to look at it in a totality.

Again, corporations cannot pay taxes.  Only end users, consumers, who buy something ar ethe ones who cover all previous axes.  Until the end user consumes the item, all taxes are inputs toward the final price the end user pays.

This is one reason used goods cost so much less.  The taxes have been paid, by the poor schmuck who paid retail.

Taxes can be used to kill a company, but it is impossible to tax business, unless the business, having paid the taxes, goes under.  In that case, the dead business acted like the end-user.

The question is, what do we get for our taxes?

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