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Tuesday, August 26, 2008
Tuesday, August 26, 2008
Aug. 26: Pulling in Pennies
REPLY: In response, to “Nix partial penny,” Aug. 24, I agree wholeheartedly with Norm Beavers about the 9/10 cent tax on gasoline. However, the practice of pricing articles at $1.99 or $29.99, there is a sound business involved.
When an article is priced at $1.99, a tax is added at the price of $2. When the business pays taxes at the end of the year, it pays on the price charged of $1.99. Now, depending upon the size of the company, Sears for example, try to imagine the amount of added income to the company of each penny the public pays tax on, but the company doesn’t.
Believe me, it is substantial.
Don Hopper
Flint
When an article is priced at $1.99, a tax is added at the price of $2. When the business pays taxes at the end of the year, it pays on the price charged of $1.99. Now, depending upon the size of the company, Sears for example, try to imagine the amount of added income to the company of each penny the public pays tax on, but the company doesn’t.
Believe me, it is substantial.
Don Hopper
Flint
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