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Theforgottendwarf t1_j9jp9qd wrote

Reply to comment by Scorpions99 in [OC] How Walmart makes money (they just released earnings for the fiscal year ending January 31) by IncomeStatementGuy

I think you missed the point. In most places sales tax is around 8%. Walmart makes 3%. The govt makes money by you shopping at Walmart, instead of at mom and pops that are far harder to tax properly.

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goodluckonyourexams t1_j9jzyup wrote

>The govt makes money by you shopping at Walmart, instead of at mom and pops that are far harder to tax properly.

uh what

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Theforgottendwarf t1_j9m747o wrote

For every $1.00 you spend at Walmart you pay $0.075 generally in sales tax. Mom and pops, small businesses historically hide some transactions as cash. As well Walmart hires a great mix of skilled/unskilled labor which helps boost the local economies. This is why local/state governments “sponsor” walmart, giving them great subsidies and have no issues with employees on welfare. Because they know many of those employees wouldn’t make it elsewhere.

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