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Monday, January 4, 2010

Taxation

Hey, I was wondering... do they charge tax on gumballs from gumball machines? I mean, it's what, 25 cents?
So, let's suppose the gumball machine owner buys the gumballs to fill his/her gumball machine at 17 cents each.
Is he/she actually charging, say, 23 cents a gumball, with 2-cent tax? So then, of the 25 cents made for each gumball, 17 of that was to buy it, 2 goes to the government, and the owner gets to pocket the 6-cent profit.
Or does the government find gumball machines too inconsequential to bother charging tax, giving the gumball machine owner an 8-cent profit on each 17-cent gumball?
Hmm....

It's thoughts like these that make the world go 'round.

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