To the first part of your post — food is cheaper than it would be if restaurants weren’t tax cheats. That doesn’t mean they sell at cost. They sell to make a profit. And if they paid more taxes, the prices would be higher for them to make that profit.
To the second part of your post — Tax evasion is rampant in the restaurant industry (excluding chains – I’m talking mom and pop places). I’m comfortable making that generalization. That doesn’t mean they pay zero taxes. In any event don’t get too hung up on restaurants. The point is about any hard to track cash business. Restuarants are just a good example.
M4L, he is not my buddy, just someone I know. Otherwise I would have told him it’s a stupid idea. The only reason why I think he’ll last a year is cause his inlaws have piles of cash from their successful business so they’ll keep funding him until utter failure which might take a year.
I think we are positioning for a strong rally in the stock market. Numerous indicators are pointing to an extremely oversold market. Most importantly, the rate of growth of MZM money supply has just turned positive from being extremely negative.
“From December 2009 into April 2010, MZM
money supply saw the worst contraction
on a 13-week rate of change annualized
basis since the 1980s. YoY growth for MZM
reached -9.29% on 19 April 2010,
exceeding the prior lows from May 1988
and May 1994 of -6.87% and -6.47%,
respectively.
As of 28 June 2010, YoY growth rate on an
annualized 13-week rate of change basis
was 1.30%. This improvement from the
April lows has the potential to support a
near-term rally in stocks.”
I don’t see where food in any restaurant is cheap. Even at the local greasy spoon, you’re paying $1.25 for a cup of tea that costs, at best, 15 cents, including milk and sugar. But then I also understand the concept of overhead and making a profit. Expensive restaurants are such because of factors both quanitfiable and unquantifiable, from the cost of superior food products, to higher rents, better locations and even staff, to unquantifiables such as paying for the chef and his/her reputation/education/experience/hype, the coolness and hip factor of the restaurant, ratings and hype/hype/hype. If a diner can’t afford that, or is not interested, they will go elsewhere.
I also don’t see how you can make broad generalizations about whether someone is a tax cheat by their type of business. I’d be more inclined to think high end “visible” incomes are just as likely to shield tax cheating as a cash business, it’s just done differently, and maybe requires a better accountant. Besides, the higher end the restaurant, the more likely most of the transactions will be credit cards, which leave a paper trail. If all the sales are rung up on a point of sale cash register, it’s also hard to fudge the numbers there, too. Paper trail, once again.
“Almost every reputable study — The National Science Foundation, the Rand Corporation, the CATO Institute and numerous academic efforts — suggest that (illegal) immigrants contribute more to economic output and taxes than they cost in services.
MM….did you see Friday’s “Open House Picks: Six Months Later?”
786 Putnam sold for $775,000. Was that the one that had the blue painted waiscoting on the garden level? The listing is gone.
That seems to be a pretty strong price and it’s only 3 storeys as Brownstoner like to point out.
Montrose:
To the first part of your post — food is cheaper than it would be if restaurants weren’t tax cheats. That doesn’t mean they sell at cost. They sell to make a profit. And if they paid more taxes, the prices would be higher for them to make that profit.
To the second part of your post — Tax evasion is rampant in the restaurant industry (excluding chains – I’m talking mom and pop places). I’m comfortable making that generalization. That doesn’t mean they pay zero taxes. In any event don’t get too hung up on restaurants. The point is about any hard to track cash business. Restuarants are just a good example.
M4L, he is not my buddy, just someone I know. Otherwise I would have told him it’s a stupid idea. The only reason why I think he’ll last a year is cause his inlaws have piles of cash from their successful business so they’ll keep funding him until utter failure which might take a year.
I think we are positioning for a strong rally in the stock market. Numerous indicators are pointing to an extremely oversold market. Most importantly, the rate of growth of MZM money supply has just turned positive from being extremely negative.
“From December 2009 into April 2010, MZM
money supply saw the worst contraction
on a 13-week rate of change annualized
basis since the 1980s. YoY growth for MZM
reached -9.29% on 19 April 2010,
exceeding the prior lows from May 1988
and May 1994 of -6.87% and -6.47%,
respectively.
As of 28 June 2010, YoY growth rate on an
annualized 13-week rate of change basis
was 1.30%. This improvement from the
April lows has the potential to support a
near-term rally in stocks.”
I don’t see where food in any restaurant is cheap. Even at the local greasy spoon, you’re paying $1.25 for a cup of tea that costs, at best, 15 cents, including milk and sugar. But then I also understand the concept of overhead and making a profit. Expensive restaurants are such because of factors both quanitfiable and unquantifiable, from the cost of superior food products, to higher rents, better locations and even staff, to unquantifiables such as paying for the chef and his/her reputation/education/experience/hype, the coolness and hip factor of the restaurant, ratings and hype/hype/hype. If a diner can’t afford that, or is not interested, they will go elsewhere.
I also don’t see how you can make broad generalizations about whether someone is a tax cheat by their type of business. I’d be more inclined to think high end “visible” incomes are just as likely to shield tax cheating as a cash business, it’s just done differently, and maybe requires a better accountant. Besides, the higher end the restaurant, the more likely most of the transactions will be credit cards, which leave a paper trail. If all the sales are rung up on a point of sale cash register, it’s also hard to fudge the numbers there, too. Paper trail, once again.
“Don’t you remember the report on Brownstoner: vintage street lamps in Brooklyn Heights. Why, that’s right up there with the Hoover Dam!!!!!”
Ugh – don’t bring that up again Benson. That pissed me off for a few months!
Netherlands is blaming the referee.
“Additionally, name one public works/infrastructure project here that started and is progressing on stimulus money.”
DIBS;
Don’t you remember the report on Brownstoner: vintage street lamps in Brooklyn Heights. Why, that’s right up there with the Hoover Dam!!!!!
PS: welcome back!
Here’s another point of discussion….
“Almost every reputable study — The National Science Foundation, the Rand Corporation, the CATO Institute and numerous academic efforts — suggest that (illegal) immigrants contribute more to economic output and taxes than they cost in services.
http://www.bloomberg.com/news/2010-07-11/know-nothings-ghosts-haunt-immigration-debate-albert-r-hunt.html