Politician Archive

Thread: Taxes on item sold *to* merchant vendor

AkashaMoonshadow
Tue Nov 18, 2003 3:33 am
#1

AGREED! Thank you ... As a Master Tailor - Master Artisan-Merchant-Mayor with ZERO skill in any weapon I can't get my own hides etc and since I own a PA hall that take 9 lots!!! I HAVE to buy resources!


Please Devs rethink this make sure there are nosales take on offers.


Thanks!




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Plinka
Tue Nov 18, 2003 5:04 am
#2

I can certainly see your point. I'll be sure to bring it up and see what the thought is on this.



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Exitio56
Tue Nov 18, 2003 6:51 am
#3

Just say no to double taxation! If they don't listen to us let's have a tea partyand throwcrates of droid storage modules into the river running through Theed!


Seriously though, taxing twice makes no sense economically and just serves to run up prices. Businesses in that "real" world people keep talking about don't have to pay taxes on goods they buy from their suppliers (at least in the US).




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Waste93
Tue Nov 18, 2003 8:29 am
#4

How is this a double taxation? The tax kicks in when something is sold. The person leaving the items on the vendor for you is selling them to you. You get taxed, the seller does not. Hence there is only one tax. It would only be double tax if both the seller and the purchaser were taxed.


Businesses in the US do pay taxes when purchasing items from their suppliers. Restaurants pay taxes on the supplies they purchase. There are excemptions though for some businesses. Also remember sales taxes (in the US) are all state, county, town only. So if a business is purchasing items across state lines, and neither the supplier nor the purchaser have offices in the same state, they are exempt from the local tax. Has to do with taxing interstate commerce. Which is why you can frequently purchase items of the internet without paying a sales tax. You just have to live in another state.





Colonel Waste - The Wookiee Crusader
Syd1
Tue Nov 18, 2003 8:32 am
#5

I don't think this is double taxation. Double taxation is when the credits come out of your pocket twice. It's not double taxation just because the city makes revenue two or three times over the life of the product.



- Sydira

Sunakk
Tue Nov 18, 2003 8:45 am
#6

I think this is a good way to get sales tax revenue. The original resources may be taxed twice (in the final product form for the second tax), but it is because it was sold twice. Two distinct transactions between two different sets of people.

Yes, the cost of the product can go up or you can take the loss, but the merchant should have to pay taxes just like the customer does.



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PadawanChong
Tue Nov 18, 2003 8:48 am
#7






Sunakk wrote:
I think this is a good way to get sales tax revenue. The original resources may be taxed twice (in the final product form for the second tax), but it is because it was sold twice. Two distinct transactions between two different sets of people.

Yes, the cost of the product can go up or you can take the loss, but the merchant should have to pay taxes just like the customer does.



Have you ever seen Kidco? They got around the double-taxation. Items should NOT be taxed twice.



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Waste93
Tue Nov 18, 2003 9:01 am
#8






PadawanChong wrote:


Have you ever seen Kidco? They got around the double-taxation. Items should NOT be taxed twice.





They aren't being taxed twice. They are only being taxed once per transaction. Or once per time sold. That's they way it works in the real world too.


What's being asked for here is a sales tax exemption for the vendor owner. So the merchant wouldn't have to pay a sales tax when they buy something that was offered to their vendor. Yet all their customers that purchase from them would still have to pay the tax.


If people are having a problem with this then I suggest talking to your Mayor. Have them lower or eliminate the sales tax. Problem solved.




Colonel Waste - The Wookiee Crusader
Potillan
Tue Nov 18, 2003 9:33 am
#9

Simple solution, move to a city with lower taxes.






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AgentClark
Tue Nov 18, 2003 9:41 am
#10

Yea this is SOO not double taxation. It's just like if I buy Wall units from someone to make houses and sell them He maybe my wholeseller but I still have to pay sales tax like anyone who buys a house from me. I'm not exempt as a vender from taxation.

My question is: How can I apply for NON-Profit status!
Arrya
Tue Nov 18, 2003 9:47 am
#11

There is no way for the system to tell if it is going to be a product that is going to be resold and "double" taxed though. It is simply a tax on a transaction. We were thinking about this the other day - we are a crafting town, but we also have a lot of resource dealers, and people that buy resources by having them uploaded to their vendor. We are taxing the resources, and then many times these resources are made into a fisnished product and we are taxing that as well. In the end, it is all going to work out though - more sales tax revenue means I can lower it. Its already at 1%, but I might have to go to a system where I set it to zero every other week because we are bringing in too much money. IMO, its a nice problem to have.



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PadawanChong
Tue Nov 18, 2003 9:47 am
#12






Waste93 wrote:


They aren't being taxed twice. They are only being taxed once per transaction. Or once per time sold. That's they way it works in the real world too.






If you're buying the items to craft goods, they ARE being taxed twice. Once when you guy the resources. Once when you sell the final product.



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GermainePropane on Virtue - City of Heroes. The best combat system in an MMO.
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PadawanChong
Tue Nov 18, 2003 9:48 am
#13

Also, once when you buy the resources.



============
GermainePropane on Virtue - City of Heroes. The best combat system in an MMO.
Lvl 43
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