Quote:
Originally posted by MakoMike
Sandy, the tax is imposd at the maufacturers' level, so generally unless you're pouring plastic or making rods, you're not subject to the tax.
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Mako...I know your a tax guy but that money has to come from someplace!...If you buy a plug at your favorite tackle shop that was made from our good buddies Habs or Salty, they have to (or should have had to) pay the 10% manufac. tax.
Where do they get the money to pay for that tax?
Ans. You and me when we purchase the plug. It is just passed along as a cost of doing business. So we end up paying for it but it is just buried within the price. This is known as a "Stealth tax" (you are paying a tax, you just don't know it) Then when the guy at the cash reg., charges state sales tax on the cost of the plug (which has a 10% tax in it already) this is tax on tax. And of course I paid for this with money I earned and already paid income tax on... NO MORE TAXES OF ANY KIND
One could argue that when a homebuilder sells a plug to Joe Bulletinboard and doesn't collect 10% for uncle sam he is avoiding taxes. I think that is a felony right? I doubt the IRS is cracking down on plug makers trying to make a couple bucks but the tax laws are screwed up.
IMO drop all taxes, wipe out the IRS and start all over with a A SINGLE tax maybe a consumption like tax and leave it at that...no income tax, no deductions, just a 4X6 card you file incase you have some special case but 99% of people should not have to file anything IMO! 5000 pages of tax documents that no one undersands is silly.
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