You obviously are misinformed and mistaken. Or your sentence needs tweaking. Or you have never filled out a CRS-1 form. It is in our city of Albuquerque 7%. The state will collect more gross receipts on the increased cost of living, goods and services. Unless you think that cost of living is static and goods and services won't increase. With increase in wages, more taxes and add-ons will bring more money into the government's coffers.
Slowly: You pay one dollar and seven cents in gross receipts for your gazoobo. The cost of doing business goes up and you are now paying two dollars for the same item and now fourteen cents of that same transaction goes to the state in the form of gross receipts. And the cost of goods sold and made and...it goes on and on. Really like a multiplier effect. Own your own business and maybe you will come to understand.
Increasing the minimum wage is a bad thing for the minimum wage earners and for the rest of the earners + the economy. No, my sentences don't need tweaking. Are you an english expert? I don't want to make this a comparrison of education.
If you make 7.5/hr and you get a bump to 8.5/hr, on paper it looks good. This increases the operating cost of McDonalds or what have you. The rest of the earners who are used to going to MickeyDs to buy combo #1 for 5 dollars are all of the sudden paying 7 dollars for that combo. Yes, you are collecting what appears to be more on gross receipts. What you fail to see is that with the cost increase, you've affected demand. People will not be so willing to buy that 7 dollar meal. This is a bad thing in that the business, although on the surface should be bringing in more gross receipts, has seen a decrease in sales. Ultimately, a drop in sales means less tax money coming into your coffers. Furthermore, now those workers cannot afford to eat there either, even with their raise. More over, the buying power of the middle and upper groups has decreased. Once again, impacting demand. Keep raising the minimum wage, and even the guy who posted on here that the minimum wage is irrelevant to him as he works for himself, will be impacted. Unless you are making millions, which I doubt anyone on here is, increases in minimum wage diminish your buying power (ie you can afford less while visibly having more dollars).
I think you are wrong on all counts. I am not assuming that anything is stationary or static. Gross receipts do not tell the entire story. As a business man with your own business, how does it make sense to have more gross receipts if your operating costs are rising at noncorrelating rates? Again, your raised operating cost is transferred over to the customer who may say, Willsmoother's products are no longer worth buying, so I simply won't buy anymore. How long do you think that your increase in gross receipts will continue? At what point will your increase in gross receipts become a chapter 11 filing?
You are only looking at taxes and gross receipts. You've failed to see what a business person must be abale to see in order to stay in business. You must see and understand what drives the demand and what will keep that demand. If you focus only on gross receipts, it is possible to have operating costs equal gross receipts and then you are no longer a very smart businessman.
How now brown cow?- Bugs Bunny