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Article #2152Re: Economic theory /Franchise/Antitrust
From: Latte
Date: Wed, 11 Dec 1996 00:00
Date: Wed, 11 Dec 1996 00:00
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1459 bytes
Although this question is hypothetical,it has serious implications for
an analogous situation:Suppose a city (or private franchiser) had 10
motels and each one paid an annual franchise fee of $10,000. In
addition each motel paid a $3 per person occupancy tax. Because the
city (or private franchiser)benefitted from higher occupancy (the
current average being 60%), it purposed that motels with less than 60%
occupancy would pay a higher franchise fee and those over 60% would pay
a lower fee: for example
@ 70%= $5,000 fee, @ 80%= no fee
@ 50%= $15,000 fee, @ 40%= $ 20,000 fee
with the goal of trying to force motels to raise their occupancy rate
and generate higher revenue from the $ 3 per day occupant tax.
Is this a proper/legal method. Thank you Rich
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X-Google-Language: ENGLISH,ASCII-7-bit X-Google-Thread: fd5f7,7f556d85f636f5af,start X-Google-Attributes: gidfd5f7,public X-Google-Thread: fb1ea,7f556d85f636f5af,start X-Google-Attributes: gidfb1ea,public X-Google-Thread: f6783,7f556d85f636f5af,start X-Google-Attributes: gidf6783,public From: latte@ix.netcom.com(Latte ) Subject: Re: Economic theory /Franchise/Antitrust Date: 1996/12/11 Message-ID: <58l0v7$r3q@dfw-ixnews7.ix.netcom.com> X-Deja-AN: 203412419 references: <32ADC5D1.4F42@ltspeed.com> <58l006$kjh@dfw-ixnews8.ix.netcom.com> organization: Netcom x-netcom-date: Tue Dec 10 6:58:15 PM CST 1996 newsgroups: sci.econ,can.legal,uk.legal