From: Edward Morgan (morgan54801@yahoo.com)
Date: Tue Jan 21 2003 - 12:29:50 PST
In a Capitalistic system the people shouldn't be in
competition with the Government, the Government should
let the people set the price and make it or fail.
Ed
--- Steve Grammont <islander@midmaine.com> wrote:
> Hi Ed,
>
> > You site an example of somebody making a 4X profit
> on
> >something, and paint all the dealers with the same
> >brush.
>
> I didn't intend to. In other places I said
> specifically that I think
> dealers are a GOOD thing to have and I would gladly
> pay a reasonable
> premium to purchase something from one of them
> instead of GL directly for
> adding value to that vehicle/item.
>
> Having said that, I do not agree that all items sold
> out through GL are
> maximized. I also think that dealers have the right
> to be unscrupulous
> as long as I have the right to point out that they
> are gouging.
> Fortunately I have seen very little of this in my 4
> years of collecting
> and USUALLY the gouging comes from small time
> operations with a "get rich
> quick" mentality.
>
> > If some guy wants a certain truck, usually the
> best
> >one, he will out bid the dealers. The dealers bid
> the
> >same amount on all the trucks in the row, and get
> >what's left over after the spot bidders. After
> taking
> >the good parts off the scrap trucks, to fix the
> other
> >trucks, all you get is scrap metal price for what
> is
> >left, less then what you bid. The dealer needs to
> make
> >something so he can bid again, make a living, and
> pay
> >the help.
>
> Correct. This is all fine when it works correctly.
> That includes GL
> getting max income in relation to market value.
>
> > All these people pay taxes, so the IRS gets their
> >share without getting their hands dirty.
>
> You obviously don't know the reality of tax codes
> like I do :-) But that
> isn't the point. For the sake of argument let us
> say some dealer sells a
> vehicle for $45k off of a $10k auction item in which
> he added only $1000
> worth of value (basically, he did the paperwork and
> towed it home). That
> means the dealer got $34k in profit before taxes.
> Let us just say that
> when all is said and done he has to pay 40% on that
> profit (which would
> mean this was his ONLY sale that year) in accumulate
> taxes. He is
> therefore left with $20.4k after tax profit. The
> Government gets the $5k
> + $13.6k in taxes, for a total of $18.6k.
>
> Now, if the Government had sold the vehicle for $40k
> with the rest the
> same, the dealer winds up making a $4k profit, the
> Government gets $1.6k
> in taxes + $40k, which is a total of $41.6. The
> dealer still makes out
> handsomely and the end buyer is out the same amount
> of money. The big
> difference is that the Government walks away with
> the lion's share of the
> profit. And that is the way it should be in a
> correctly functioning
> Capitalist system.
>
> Steve
>
=====
__________________________________________________
Do you Yahoo!?
Yahoo! Mail Plus - Powerful. Affordable. Sign up now.
http://mailplus.yahoo.com
This archive was generated by hypermail 2.1.4 : Wed Apr 23 2003 - 13:25:02 PDT