Profit is a Tax

Now hold on, profit is voluntary and tax is not. But is that the case? You’ll note the close relation, tax comes from profit.
And profit might be voluntary in the same sense as if you don’t like this country you can leave, or if you don’t like this job you can quit or if you don’t like this system you can find another planet or time period. Try to avoid it in the face of monopoly. I do believe you can squeeze profit and keep costs from being passed on (not price control) as in CA auto insurance market, but its not easy.

If you say profit is a tax, is tax a profit? Huge problem when it becomes so. Biggest problem with taxes as with profit aside ftom coercive pressure is to whom it accrues.

In Australia and maybe elsewhere, fees is the new profit centre of many businesses and government.

For instance the largest telco here charges $15 & increasing for being even one second late in paying the bill. The actual cost to the company is a little interest (currently <2% PA) and printing the charge on the next bill which is sent by email. The real cost to the telco for the average customer who is 2 weeks late is 0.02/26 * $120 == $0.092 I didn’t include the bill cost as its like microcents. So that is 16,200% profit on the costs to the company for a late payment.

And then if you want a paper bill (mostly the poor since they do not have reliable internet/email) they charge $2.20 to $5.00 when the real cost is company postage rate (< $0.50) and printing/stuffing costs. We have companies that print, stuff envelopes & post for less than $0.90 per letter. So profit of over 250% for posting paper bills out. Only a few years ago it was all paper bills and NO additional cost.

The government for instance is now charging $50 for being one second late paying registration fees. Cost to the government is only the cost to add the fee to the bill when late so I class the cost to the government as ZERO.

Now its typically the rich lazy person (few) and the poor person (a lot of people) who is late paying big bills. And then federal ministers say that poor people don’t drive so government tax increases on petrol do not affect the poor. Governments are so out of touch with the real person.

Not to mention the 2-5% fee for using credit cards in many places. Mind you the public outcry was enough for government to actually do something and after the enquiry my telco went from charging 2% to charging 0.35% overnight. They did so to avoid heavy penalties.

The new economy of (late) fees & charges has arrived in Australia.

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Few things to point out:

Ever watched a mobster movie?
Someone from the gang comes to a shop owner and tells him he needs to pay some protection money, that way the gang will protect him for robbers and other gangs. Of course if he doesn’t pay they will break his legs or worse… not much of an option right?

The origin of monopolies actually comes from monarchy periods, when the king would grant exclusive rights to sell products for a specific merchant close to him, or someone who maid a generous donation to the crown :wink:
Anyone trying to compete would be breaking the law.

When you have free competition, sometimes a company might grow fast and get large enough to the point that it resembles a monopoly. But if there is no government to regulate the competition, eventually some smaller company will come up offering better services/products.
One great example is what Uber is doing to taxis all over the world, despite facing dumb regulation all over. But you can find many others (even Tesla in a way).

Cheers

Its why its called in part I think state monopoly capitalism. But I don’t see markets as self regulating any more than a typical garden is permaculture. And the typical firm is fiefdom. But profit in the absence of competition is just a tax. But more than this I don’t like hierarchical firms or the idea of a labor market- might as well be a prostitution market.

Our link to society is way deeper than any petty conception of ownership. Ownership based is finders keepers nonsense. Way better to have raw unmitigated entitlement for all than a society of arbitrary but heredity based kingships. A king is a crime. Kings of of the way, way back had set expiration dates where they were tossed in volcanos.