> Absolutely. Our government can't function without the taxes from
for-profit
> businesses and it is the responsibility of our government to protect
for-profit
> businesses from competition that comes from NPOs and imports.
What next -- make volunteer labor illegal (because it competes with paid
labor), ban hobbies in areas where people compete for-profit (sorry, you
can't publish your fiction on your personal web page without charge, because
that competes unfairly with companies who publish fiction magazines) or
require certain minimum profit margins (because "for-profit" companies
willing to accept lower profits compete with those looking to maximize
profit)?
Methinks the government has no such responsibility. For-profit businesses
can tend their own gardens, and they get enough government handouts already.
And I don't want any government agency telling me what I have to charge or
how I have to spend my money in order to meet some target of acceptable pro
forma profits or whatever. I have a right to drive myself out of business
by running my company poorly, if I so choose, or to make out like a bandit
if I can run it well. And if I'm making out like a bandit (like, say, the
way Microsoft does), it sure seems tasteless for me to whine that I'm
undercut by competition that isn't trying to sock away double-digit net
profits the way I am.
> I think they should keep a close eye on things. After all the American
> government is a business, too. If some of its sources of income are
> competing with sources that don't pay taxes then I would be shocked
> if they didn't try to do something about it.
Are we talking about the same government that hasn't done anything of
significance about the 50+ people who went on record of the front page of
the NY Times stating they and their companies did not withhold or pay taxes
for themselves or their employees because they felt it was unconstitutional
or something? Several months ago? I would be shocked if they DID do
something about it, given how busy congress is trying to help rich families
avoid ever paying capital gains taxes.
In any case, if non-profits rake in the cash, they will spend it in the
economy or in pay to employees, who still pay personal income tax. In that
sense, they're not so different from an S-Corp. Nor are they much different
from a for-profit company that is unprofitable or only marginally
profitable.
How would Microsoft like it if the government told them they could not, as
they plan to, sell XBox consoles for a $100 loss each for the next three
years, because it's unfair to the Playstation 2 which does not have
Microsoft's deep pockets and cushy profits from other divisions to absorb
those losses? How many NPOs can afford to do THAT?
In any case--I have not been following this thread too closely, but it sure
seems to be veering far off topic.
------------------------------------------------------
John Nephew voice (651) 638-0077 fax (651) 638-0084
President, Atlas Games www.atlas-games.com
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