09-04-2018, 03:56 AM
you must remember the tax is on the business and not on the customer."
Instructor: Welcome to UHH Econ 101 - Introduction to Economics in Hawaii, Fall Semester 2018. Your outline for this term includes:
1) Hawaii State Excise Tax - The tax is on the business and not on the customer.
2) Hawaii Businesses - The cost of inventory and overhead is on the business, not on the customer. The business can choose whether to pass that cost on to the customer, or not.
Student: But... wouldn't a store or company go out of business if they didn't pass the cost of inventory, overhead, even the taxes they pay, on to their customers?
Instructor: Yes, but it's still their choice to charge the customer a fee or price, or give their product or services away for free. Understand? That's why it's called the Free Market system. And why the State of Hawaii does NOT charge residents a tax, instead "the (Excise) tax is on the business and not on the customer."
Now, moving on...
Instructor: Welcome to UHH Econ 101 - Introduction to Economics in Hawaii, Fall Semester 2018. Your outline for this term includes:
1) Hawaii State Excise Tax - The tax is on the business and not on the customer.
2) Hawaii Businesses - The cost of inventory and overhead is on the business, not on the customer. The business can choose whether to pass that cost on to the customer, or not.
Student: But... wouldn't a store or company go out of business if they didn't pass the cost of inventory, overhead, even the taxes they pay, on to their customers?
Instructor: Yes, but it's still their choice to charge the customer a fee or price, or give their product or services away for free. Understand? That's why it's called the Free Market system. And why the State of Hawaii does NOT charge residents a tax, instead "the (Excise) tax is on the business and not on the customer."
Now, moving on...
"I'm at that stage in life where I stay out of discussions. Even if you say 1+1=5, you're right - have fun." - Keanu Reeves