From: Joe Thomson <thomsonhiyu@shaw.ca>
Reply-To:
socialcredit@elistas.com
To: socialcredit@elistas.com
Subject:
[socialcredit] The CPD and Taxes.
Date: Mon, 23 Oct 2006 18:25:18 -0400
If the price of an article for sale were $ 100 and on top of that the
government levied a 10% Sales Tax, the cost to the consumer is going to be $ 110
to purchase that item.
If we had a Compensated Price Discount in place, and the discount rate for
the particular period selected was 25%, the customer would, in effect, be paying $
75 net for the article, plus the $ 10 Sales Tax charged on the undiscounted
price, for a total actual cost to him of $ 85.
$ 110 - $ 85 = $25. He's getting the article that would previously have cost
him a total of $ 110 for only $ 85. And the Government is getting the same
amount of Sales Tax revenue on each sale, only in all likelihood there'll be
considerably more sales. Have we not rather painlessly funded Government without
diminishing consumer purchasing power? And if the use of credit is to lower
prices in this manner, how can that possibly be inflationary?
Joe
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