Friday, November 19, 2004

Small Drugstores to Close for Giving Tax Creditable Discounts? You Gotta Be Kidding

The Establishment has a story about the possible closure of small drugstores if the Department of Health implements the full 20 percent discount to senior citizens as mandated by law. The story is obviously a press release masquerading as news. While the story banners a cause and effect slant, it doesn't explain enough how it arrived at that conclusion. The report said that the average spread of small drugstores per drug is only about 5 to 10 percent. It didn't report, however, what percent do the senior citizens' discounts take out of the total sales of these drugstores. Or are we supposed to believe that small drugstores sell only to senior citizens? Ha -- what a joke. The drugstore receipts of my four kids can belie that claim. Besides, the discounts are tax creditable, and taxes take about 30 percent of income. This means the discounts that they give to senior citizens may be applied as tax payments. So there is no loss there at all. They have to pay taxes, don't they? These are details that were left hanging by the press release. What makes them think they can fool us? Pray these people don't grow old.

(Revised post)

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