6 ms·

My whole line of reasoning makes perfect sense given I worked in trades doing exactly what I talk about in a country with one of the most complicated tax system

My whole line of reasoning makes perfect sense given I worked in trades doing exactly what I talk about in a country with one of the most complicated tax systems there is. Prices are calculated by adding your costs into the base price which is common sense. If you do that you can actually calculate the amount of coffees you need to sell to turn a profit and if the business even makes sense in the first place. Every unit of coffee you sell should turn a profit. Which in turn should be taxed. Even cigarettes that probably only turn micro cents profit should be taxed by per unit sold. They even are, given their sales are heavily regulated. No company is giving out "free" products without making a profit just to go even on their initial investment.

jacobjjacob 1mo ago
Over what timescale do you amortize your investment by pricing it in? Do you earn back your $100k by selling $20 coffee? That wouldn’t be sustainable. So, this is where the loss comes in. You can’t realistically sell at a profit considering your capital investment if you aren’t carrying it over longer periods of time.
bluecalm 1mo ago
I am sorry but this is just nonsense and luckily I don't know any country where you are required to do that. I started a business myself, first I spent a lot of time making something and then I tried to sell it. I had no idea if people would buy it or not. There would be no way for "every copy to turn a profit". Luckily no sane country requires you to do that. >>No company is giving out "free" products without making a profit just to go even on their initial investment. Profits appears when your revenue exceeds your costs which doesn't happen on the first or second (or sometimes 10000th sale). You are arguing for some completely different tax system which luckily we don't live under. >> If you do that you can actually calculate the amount of coffees you need to sell to turn a profit and if the business even makes sense in the first place. You can't calculate "if the business even makes sense in the first place". It's a bureaucrat's dream but it's not how the real world works. You make a bet and and hope it works out. I may or it may not (the usual case with businesses).

jacobjjacob 1mo ago

Over what timescale do you amortize your investment by pricing it in? Do you earn back your $100k by selling $20 coffee? That wouldn’t be sustainable. So, this is where the loss comes in. You can’t realistically sell at a profit considering your capital investment if you aren’t carrying it over longer periods of time.

bluecalm 1mo ago

I am sorry but this is just nonsense and luckily I don't know any country where you are required to do that. I started a business myself, first I spent a lot of time making something and then I tried to sell it. I had no idea if people would buy it or not. There would be no way for "every copy to turn a profit". Luckily no sane country requires you to do that. >>No company is giving out "free" products without making a profit just to go even on their initial investment. Profits appears when your revenue exceeds your costs which doesn't happen on the first or second (or sometimes 10000th sale). You are arguing for some completely different tax system which luckily we don't live under. >> If you do that you can actually calculate the amount of coffees you need to sell to turn a profit and if the business even makes sense in the first place. You can't calculate "if the business even makes sense in the first place". It's a bureaucrat's dream but it's not how the real world works. You make a bet and and hope it works out. I may or it may not (the usual case with businesses).