Comments on: It’s Time to Support the Hospitality Industry https://www.apeonline.org/2020/04/24/its-time-to-support-the-hospitality-industry/ Sat, 25 Apr 2020 03:33:08 +0000 hourly 1 By: Tim Staton https://www.apeonline.org/2020/04/24/its-time-to-support-the-hospitality-industry/#comment-487 Sat, 25 Apr 2020 03:33:08 +0000 https://www.apeonline.org/?p=8754#comment-487 I am not a fan of taxation, But the taxes that are implemented are not a tax on the sellers/vendors of alcohol or the renters of rooms and even Tobacco or Pot. The tax is added to the the alcohol, tobacco, Pot, and/or the rooms above and beyond the retail cost.
Your profits are not being reduced by taxation because the consumer of the taxed products or the person staying in a hotel is paying the taxes not you.

There is no impact directly to your profit margins since the tax is a separate charge on the receipt other than your responsibility to track that taxes and pay them out to the Government. The only cost to a vendor is no different at 1% than it would be if it were 10%. Vendors of taxed businesses still bare the same burden to report and pay out the collection of taxes.
If the taxes were to be eliminated I would be that the total cost of a room would stay the same as the total with a tax as well as the drink or smoke.
It is well known that once a consumer is willing to pay an amount as the market bares when the tax is reduced the price is generally maintained as what the market will bare. Your argument that Alcohol or bed taxes costs you money as a reduction of profit directly is invalid.

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