BS: The latest new tax

Subject: BS: The latest new tax
From: EBarnacle
Date: 03 Feb 04 - 12:27 AM

New York State, in its infinite wisdom and its desire to get a little more from its residents, has now added a new line to its tax forms. this line is a calculation of the things we buy out of state. We now have to declare our out of state purchases, including on line, mail order, etc and pay New York additional taxes on these purchases, even if we have paid taxes on these items in the state of purchase. These taxes include cigarettes from Indian reservations, etc. This is another fine example of our government looking over our shoulder. I guess they are trying to encourage people to buy in state--hah!

Subject: RE: BS: The latest new tax
From: Sorcha
Date: 03 Feb 04 - 12:57 AM

How do they plan to prove it?

Subject: RE: BS: The latest new tax
From: Dave Bryant
Date: 03 Feb 04 - 05:25 AM

I once heard a proposal that sex should be taxed. Only men would pay, but the crunch was that the tax returns would be displayed publicly in a sort of league table. It would possibly be the only tax to be overpaid !

Subject: RE: BS: The latest new tax
From: JohnInKansas
Date: 03 Feb 04 - 06:00 AM

When sales taxes were started in my area (yes, I was here then) it was to be a tax on businesses operating in the local area, with the proceeds to be used to support local business.

Some smart-a** figured out that it was easier to just add the few percent to the price at the point of sale, so it appeared to be a tax on the purchaser, rather than on the business.

Of course, once the politicians got their hands on it, any "benefit of local business" disappeared.

The politicians have now discovered that people are going out of high tax areas to purchase stuff, and they think they're not getting their share. Where the tax originally was paid at the point of sale to pay for municipal support (streets, sewers, and such, if nothing else) of the businesses who offered the products for sale, they now want to make it a tax on the buyer, to be paid to his "residence" locality, who have done nothing (and hence paid nothing) to support the market from which the product came.

Internet sales have been a real sore point with the greedy. Rather than seeing it as a reason to support marketing from their own area in order to reap the taxes, they see it as an easy way to rake in some extra dough. Of course, they provide nothing to justify taking the extra, but it's there so they need it.

Because of the great variety of local tax rates and "what is taxed" differences, a group of people (there's an organization) have proposed that all localities should enact "uniform sales tax regulations" as a first step toward collecting sales tax for internet sales. This is a specifically targeted effort, for a specific purpose - to take more money out of the pockets of residents and put it in the pockets of politicians.

The New York changes, like those in my area, are specifically to establish precedent that these are "point of delivery" taxes and not "point of sale" taxes - in order to be able to tax internet sales.

The US Congress has "promised" (for whatever that's worth) to enable collection of point of delivery taxes on internet sales, if "enough" localities enact "reasonably consistent" tax policies for their collection.

Whether of not Congress comes through with the internet sales tax thing, large metropolitan areas (especially) with high sales tax rates reap a windfall, even if they're only "pretending" it's to get ready for the big 'un.

Now, since a point of residence tax depends on where you live, and since it's an "ad valorem" tax (depends on the value) it should be deductible, just like personal property taxes, on a US Income Tax return. (Sales taxes for individuals were not deductible.) Bet me how quick that will change.

Rant over

John