re: Gov. John Bel Edwards wants big changes in how LA biz, individuals taxed

quote:

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Question

GC wins a contract to build a building for a million dollars.

If there is s CAT of 1% does he pay a 10K in taxes?

If he buys his concrete from Ascendion Ready Mix and pays them 10K for the concrete Ascension Ready Mix pays 100 dollars right?

If he hires a electrician for 100K the elec cont. pays 1K right?

If the EC buys his gear from Reulet for 15K then Reulet pays their 1%.

And the beat goes on?

Every entity that is paid on this project pays taxes down the line, right? Not just the GC.

Now in the end where is the money to pay the taxes going to come from? Yes the owner who will bear the tax increase.

Now look at the little guy. When Piggly Wiggly sells you a six pack of beer they will charge you sales tax and the CAT, right? They have to do that or take it out of their profits which won't happen. Again the business won't pay the tax the person that receives the goods or services will pay and that is you.

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Yes that would happen, and is generally refereed to as tax pyramiding. But if all those businesses had a profit, they would be paying a higher rate (6-8%ish) on their profits (not including any credits, etc) so kinda have the same issue anyway with the current system.