Dear President Donald Trump
In business and government CASH is KING not the book or tax profit.
The amount of cash in the till is subject to two critical facts
- The volume/cost/price mix.
- The cents in the sales dollar of TAX and GOVERNMENT CHARGES.
From my experience over 60 years as a Chartered Accountant, most businesses do NOT know the figures for (1) and (2).
When the volume goes down the costs per sale go up because indirect costs are spread over fewer sales. If the prices do NOT go up the business will be in trouble with less cash in the till.
COVID19 cut the volume of sales forcing businesses to increase prices causing inflation which is on going.
Many businesses including large businesses fail because they do not have the cash in the till to pay their TAXES.
A Consumer Boycott can quickly put a business in financial trouble with its Creditors including the IRS. Less cash in the IRS till puts Government Budgets into bigger deficits putting the Government under pressure to help failing businesses etc.
In the Middle East the Arab communities are applying a Consumer Boycott against Israel to have it STOP the genocide and war crimes.
With 2% LIBERTY TAX American consumers can, with existing money, buy more goods and services at the reduced prices, to increase the volumes and profits of businesses to pay the 2% LIBERTY TAX to Government to fully fund it.
Kind regards
Derek Smith CA