You've got to worry. We pay 20% on everything and have to pay $ to £ even though the exchange rate is $1.5 -> £1
In the US - Imop- There should be or lets say needs to be a National sales tax- with no exceptions to the mega online resellers, that would level the play field for all businesses at least on one front. All tax would be charged at the point of sale to the user. Folks like me that have paid their sales tax to their states for years would finally move the stagnant US economy in the correct direction- it says in fine print.
From the stand point of what the governments provide taxes are a necessary evil. Sweden I beleive has you beat. They tax income at 40-50%. However they as I also beleive have one of the most prosperous economies going and also have heavily invested in clean energy technologies. I think if a government utilizes a fair income tax system sales tax is not required. Maybe the answer is to make sure no one gets away without paying? We could brand everyone so they can be kept track of. Everyone wanting to be branded raise your middle finger for the process
I know in the state of Florida, when i comes to collecting tax, Due process goes out the window. The tax collectors do not need a warrant to audit your books. They can seize property to collect on said taxes that they think you owe, and it is all up the the tax collectors discretion on how much and what to seize. I am considering not selling to anybody in the state of Florida for the reasons described. I think the law requires me to sign up, and fill out monthly reports on sales. Collecting sales tax on only in state sales. That will mean at there discretion they can enter my house audit my books and inventory my belongings all without a warrant or probable cause.
Keep in mind anything as a business that you purchased in your home state is subject to sales tax. That is, even if you resold it. That is considered use. The way it works in Maryland is I have to pay sales tax regardless of having a state resale cert. No tax, hah- its merely deferred, so anything I bought in state - tax gets paid on. I pay tax wether it went on to another user or wether I converted to property used by my business. Stuff I bought out of state or or outside the country is a whole nother matter subject to income tax. Keep good records and assume eventually you will get audited, then it won't be so traumatic. A good accountant as was stated above, will help you deal with the auditors.
Last edited by Greg Blank; 21-Dec-2011 at 15:42. Reason: run on sentences.
In my "real" business I file as a sole proprietor. I collect no taxes but am charged income tax or whatever from what I bring in (I can't charge taxes anyway on services I believe, which is 99% of what I do). Luckily I have plenty of write-offs every year that keep most of the taxes away. I usually get a small refund.
I don't have the money for an accountant, nor do I think I need one. I hope that's true anyway
Interestingly I have no problem filing LF camera gear as a business expense, compared to digital stuff, because apparently modern cameras are classified as hobbyist stuff, not professional work gear, or some such thing. They only give you so much room for the description so not like they can decipher "Chamonix4x5ViewCam" anyway!
My blog about shooting film in south GA:
Income tax can hit 49 percent (combine federal and state, 24% fed and 25% QC)
Federal sales tax is 5 percent (GST)
Provincial sales tax on top, is 9.5 starting in Jan.
The 9.5 is calculated on the item amount PLUS the 5% GST.
There is supplemental tax on fuel, license plates and in my city, a $45.00 per car head tax.
There is a luxury tax on some items.
All cars and trucks with 5 liter engines face an extra tax.
There is a Tire tax
An engine oil disposal tax
There is a special tax on blank DVD and CDs
There is a mandatory public transit contribution tax
I can go on all night if you like, the list is long, but you get the idea and at the very end of the day,
There is an estate tax when go and leave what is left to your kids too!
That said, we pay far too much tax, but it sure sounds like you don't pay enough in the US.
The GST sales tax system is reasonably fair. 9.5 % provincial on top (9.97) is a bit much.
Now if only they would stop squandering and deliver some of the services they promise us in exchange those taxes.
I have had 2 mini audits and not had to pay, my books are clean and very tight.
Last time they sent me a note demanding 257 dollars because I had not filed a paper they requested. I am appealing because they never asked for that paper and I have their letters to prove my argument.
My accountant will charge far more than the $257 on this dispute and the Gov will end up with no extra dollars.
But they try.....every few fiscal quarters!!
At the heart of it all thats it.... about how the money is spent. I read an article this week that stated the US has slipped two notches in terms of the Democratic freedoms of its overall society. Sweden again was at the top of the list. Canada from what I remember was pretty far down the list maybe a few positions above the US (Not sure).