So hostile.
we've done this before.
It's not just MY taxes that affect my business. It's the raise in taxes on all the companies that supply products, services or equipment I need to run my business. Multiply all those little increases by a couple hundred suppliers and....
yes we have done this before! just consider me SLOW!!!
I REALIZE that other SMALL businesses that you buy from might have this 3% hike over their $250 k net but you would not see this affect on to your purchases unless these companies you buy from make more than the $250k net taxable, and if they do make something like $500k net a year, the 3% hike is for the latter $250k not the initial $250 k so that means these companies really only took a %1.5% increase in overall taxes....$150 bucks on every $10k in net revenues....
your prices of what you buy will NOT go up...imo....but if they do from all those people you buy from, it still will not be that much money....at the MOST it would probably be the $15 buck increase on every $1000 you buy.
If my suppliers pay more to operate, they charge me more, i have to charge more. if I get to the point where my price raises drive customers away, what should I do? reduce my offering of products and services or reduce my operating costs?
Keep in mind that the price raises i put in place are NOT to increase my profit but are just to keep my income in line with operating expenses.
you increase the productivity of your sales force, so that your payroll stays the same while your sales increase, which will more than cover the tiny weenie hike you MAY see....
So your answer to the problem is to hire more people regardless of the fact that new employees will ADD to my operating expenses thus forcing me to raise prices even more?
no, that is not my answer and you avoided answering my question to you on this skull....i asked you if you were in business before the Bush tax cuts came in to affect and if you hired people when you got this tax cut, or did you just increase your own personal income with the tax savings, or did you reinvest the tax savings in to your company?
This is something i try to explain to friends of mine who don't run a business.
Lets say I buy product X at wholesale. i charge double what i pay and you say it's too much of a mark up. but what goes into that mark up.
OK These are some of the costs in ordering and reselling a product let's say a medication
Pay an employee to order the product
Pay for shipping
Pay for an employee to unpack and stock the products making sure that we take expired product off the shelf at the same time
Pay for all DEA and state licenses and the additional insurance required to sell drugs
Pay for an alarm system so people don't steal my drugs
Take into account some product will expire and you make no profit on that
Pay an employee to update the computer inventory
Pay to heat, cool and light the storage space
If the product needs to be refrigerated, pay for that
Pay an employee to locate dispense product for customers
Pay for the containers and labels given to customer
If the medication is administered by injection, pay for syringes and all the related costs of disposing of syringes
Pay to get the trash picked up
etc
I worked for 3 major Corporations in my working career of over 20 years, i am well aware of what expenses a company has and also well aware of Mark up...and a 50% markup on your cost of goods is moderate and not excessive at all....we used a mark up of 56% at my last company and 60% at the company before that....because we were able to produce a great deal of private label goods where we avoided the "branded product's" middle man expense by skipping over them and going directly to the factories to make our products and importing them on our own.
What i am stuck on and do not understand all on is a small business and how they file their taxes...
See it's not as simple as pay a dollar for something and mark it up a little is it?