Letter: Regulations, taxes reason prices high in stores, he says
TO THE EDITOR: Mr Gaslin: You really reveal your IQ the more you write.
Corporations operate just like your small painting business. I know this because I work for a corporation and my brother has a small business.
More than that, there are investors who have poured their sweat and blood by investing in our company. I too am an investor because my profit sharing (how evil) goes towards purchasing of shares of my company.
The company also pays out dividends. We have a shareholders meeting every year where shareholders can complain about or applaud the CEO and the board of directors or even fire them if need be. They expect a return on their investments.
Our company's annual expenses including taxes and salaries is around 40 percent. The profit goes into an interest bearing account for use in the future. Unlike government salaries and benefits, my pay increases and profit sharing depend upon how well I perform and, unlike government workers, I can get fired for underperforming or if the company has to restructure because of negative economic conditions which your messiah is bringing upon us.
We have no matching 401K or pensions. While an average federal government worker's salary is $120K plus lifetime of equal pension and benefits, my company's average researcher's salary is around 50K or less and, upon retirement, we lose our health benefits. Each department in our company has a quarterly expense budget that cannot be overdrawn.
This basic model applies to all small and large corporations. Give me examples of corporate waste. Corporations are not funded by taxpayers.
The reason prices are high in stores is because of government regulations, and taxes which corporations pass on to consumers. It is not because of waste. Corporations move around and buy from the cheapest source to maintain profits.