May 10, 2016

If they would reduce their prices,
a reduced tax rate for them would be justified


Keep in mind the following:  A de facto tax im-
posed upon the poor is price rises for essential
commodities.   When prices rise, the poor get
taxed as effectively as if their tax rate rose.

When George WMD Bush took office, a gallon
of gas hovered in the vicinity of $1.69 to $1.89.
Then came Phil Gramm's Enron Loophole, fol-
lowed by the circus of oil futures speculators.
Gasoline skyrocketed to the $4.00 range.   It
was proven that the price of gas was artificially
manipulated.  Yet, today, the price isn't much
different than it was during the 2008 economic
crisis.

Food prices suddenly started rising in 2008.  In five years, how much have the prices
subsided to any reasonable level?  Think.  Higher prices yield higher sales tax reve-
nue ... only for each unit sold.  In sequence, higher prices yield less sales and less
instances of sales tax revenue.  In as much, let's do the following:

Devise a code where the tax rates of entrepreneurs and for-profit corporations 
will incrementally decrease with a decrease in the prices they charge for their 
products.  Provide ample tax incentives which consist in rewarding these entities 
for creating livable waged jobs.  Such a thing is known as returning to the 1960s 
and 1970s.   In the 1970s, the U.S. was the #2 importer nation.  Even at the start
of the 1980s, America was the top creditor nation.  Reagan ruined the trend.

Involved is also something known as price elasticity, previously explained on this site.
As a quick review of it,  lowering the price of a product or service can result in  more
sales and therefore more financial revenue.  Of course, it depends on the product's or
service's demand curve;  the amount of demand that increases as the price decreases.

As a definition, Price Elasticity is the change in demand in relation to the change of
price ... of a product or service.

A demand curve is fashioned according to something known as Marginal Utility.  Mar-
ginal denotes 'per added unit,' while Utility denotes 'usefulness.'  Thus marginal utility
is the degree of usefulness that an added unit of a product or service is perceived as pos-
sessing, by the person demanding the product or service.  As an example, the first glass
of water is far more valuable to a human than the fifth one.  In fact, the fifth glass can be
injurious, thereby creating negative marginal utility.  This is the essence of the art of de-
signating the slope of a product's or service's demand curve.

For the record the definition of Price Elasticity is simple.  It's the Change in Demand in
relation to the Change in a product's or service's price.  In as much, lowering the price
of a product can result in more revenue ... more profit.

CEO Wage History

In 1980, the average CEO made 42 times more than the average worker.  Today, the
average CEO makes 380 times more than the average worker.  These people are tak-
ing far more than they have the right to be paid.  Yet, they demand a lower tax rate.

Do not be deceived.  Lobbyists haunt the minds of congressional members, as Bob
Dole honestly stated during his honorable 1996 presidential campaign.  The logical
surmise is that a congressional member doesn't make a decision without first consid-
ering the money supplies handed out by the various lobbyists.

The use of lobbyists, to advance a self-seeking agenda, is an act of usurpation which
leaves out of the politcal process those without money ... especially those who didn't
have 24, 30, 75, and 85 cent-per-hour sweatshop workers making their wealth for
them.  This constitutes cheating.  Anyway, even the Wall Street Journal and CNN's
Money section chimed-in on the subject of income disparity.

Concerning this, keep in mind that it's the CEO's workers who work hard, no matter
what Romney the Menace stated during his vicious 2012 campaigning.  If you're too
young to remember the other presidential campaigns of the past 50 years, Romney
was, by far, the worst, in that he was the most defamatory, dishonest, and divisive
of all the presidential nominees.  The second worst would be the 1936 Republican
nominee, Alf Landon, of Kansas, incidentally.

1980 CEO avg pay =   42 times more than the average employee's income.
2012 CEO avg pay = 380 times more than the average employee's income.

http://online.wsj.com/article/SB10001424052702304458604577490842584787190.html

http://money.cnn.com/2012/04/19/news/economy/ceo-pay/index.htm
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