Many states view collecting use tax on smaller purchases as burdensome, therefore states have customarily attempted to collect a use tax only on big-ticket items that require licenses—such as cars and boats. Many states over the last several years are increasing enforcement efforts of the use tax laws to get the state population to pay the taxes due in an attempt to combat internet ordering. The realities of limited resources as well as the complexities involved with tracking down minor purchases and demanding that a use tax be paid are limiting the collection efforts.
Although taxes are inevitable, the way states tax their citizen may be vastly different. I compared two states in order to understand the contrast and comparison between their state’s tax system. I chose to research the tax systems of Oregon and Florida. Oregon and Florida are two states that are distinct from each other not only in location but in their state’s tax system as well. Oregon is heavily dependent on a personal income tax, however, Oregon is not dependent on sales tax by all means. On the other hand, Florida is highly reliant on sales tax, however, Florida holds no need for a tax on personal income. Ultimately, these two states are gaining enough taxes for them to continue to survive. This does not mean, however, that both
One microeconomic concept Proposition 56 relates to is supply, demand, and equilibrium. Taxes imposed by the government reduce both demand and supply, and cause the market equilibrium to increase and quantity to decrease. Consumers will not want to purchase because of the increase in
In the article entitled “You Can’t Sugarcoat the Facts: Taxes Influence Behavior,” Dr. J.D. Foster (2015)—Deputy Chief Economist at the United States (U.S.) Chamber of Commerce—avows that there is a communal consensus amongst economists and quasi-economists alike that taxes sway human behavior. As C. Eugene Steuerle (2008) asserts within the contents of his book entitled Contemporary U.S. Tax
Recently, the public and the government of the United States have been at odds with each other over many enforced fiscal policies. Whether one believes that the answer to the nation’s economical crisis is an increase taxation of the wealthy one percent, or the leveling of the tax rate, every concerned citizen is searching for a solution. Typically, in American politics, the liberal side of the political scale believes that the wealthy should contribute more to the nation’s tax income. This idea centers on the notion that a lower tax rate on the poor will ease their burden and allow them to purchase more products; meanwhile, the rich will support the tax deficit from the lower classes with their own vast amounts of wealth. Opposite liberals, there is the conservatives. They will typically advocate for a tax break for business owners (wealthy or otherwise) or a more even tax rate across the socioeconomic classes. This outlook is supported by the idea that if the upper one percent of the U.S.A. is flourishing, it will produce more jobs and opportunity for the middle and lower class. Regardless of who is consulted, many people in today’s more liberal society will agree with higher taxation of the rich. However, there is a growing number of people in the United States that believe that the answer to solving the economic crisis is to abolish the current income tax and replace it with a national sales tax. By installing a national
Taxes policy is one of strategies that states have to increase their competitiveness. From 51 states nation-wide, only five states that do not impose sales tax or 0% sales tax rate. They are Alaska, Delaware, Montana, New Hampshire and Oregon. Without sales tax, in this five states, people can buy everything without spending extra dollar for tax, which mean they will have extra ‘money’ for saving or spending to other goods compared to other states because some of states impose both income and sales tax.
There is also confusion regarding what is Constitutionally acceptable in the online marketplace. Many consumers and businesses believed that taxing products over the Internet was not allowed. . This misconception was cleared up in infamous Quill Corp. v. North Dakota case, which created the “nexus” law. This case has greatly effected the taxation of Internet sales. It stated that there must be a large physical presence of a company in a state for that state to lawfully require the company to collect taxes inside the state (Andes & Atkinson, 2013). With the growth of the Internet, many of these misconceptions are attempting to be understood through various forms of legislation.
Taxes play a huge party in the United States of America. Taxes are peoples and entities contribution to society to pay for all the things society provides us with. Money moves from consumers to business when people buy goods and services. When the economy is increasing and growing consumers earn more and make more purchases. Through all the purchases the government collects sales tax. The government collects money from the market purchases but provides goods and services. “The tax budget is divided into both mandatory and discretionary spending, depending on how it is allocated each year”(Reference/Government). The first time the government initiated tax was for the civil war in the 1860’s but then it was repealed in 1872. In 1913 Congress
Companies need to provide an omnichannel experience to their customers in order to keep them. However, with the huge variety of retailers and brands, it is becoming harder and harder to maintain customer loyalty. Another problem may arise from the fact that currently the U.S. legislators are enforcing laws on making online retailers to collect sales tax. Up until now, the law has been enacted in at least 12 states.
On the other side of the issue, the liberals or pro side on Internet taxation mainly use logos arguments to get their point across. Many state leaders are frustrated that collection of taxes on mail-order transactions has been banned and do not want to lose another source of revenue such as the Internet. David Coursey, an Internet industry analyst argues that, “If e-commerce is to grow, it needs to pay its own way before we wake up one morning and realize that communities have lost big chunks or their precious local tax dollars” (Internet Taxation par. 33). This could all be a
Generally, purchasers can acquire another business through either an asset sale or stock sale. Since sales tax is maybe imposed on the sale of tangible personal property, the acquisition of a business enterprise through a stock sale generally will not be subject to sale tax. For other good and valid reasons, however, purchasers may want to structure the acquisition of the business as an asset sale. These asset sales, where all or part of the business’s assets are transferred, are commonly referred to as bulk sales for sales tax purposes. Since these asset sales or bulk sales constitute, at least in part, the sale of tangible personal property, they will be subject to sales tax unless a specific exemption applies. A common exemption available to purchasers for asset sales is the “occasional, casual or isolated sale” (“occasional sale”) exemption. An occasional sale exemption generally will exempt the acquisition of assets that are sold in bulk or otherwise outside of the ordinary course of business. Most states provide such an exemption, although the scope of the exemption varies among states. Many states also specifically exclude the transfer of inventory from the occasional sale exemption since the transfer of these items is within the ordinary course of business. A purchaser may avoid the imposition of sales tax on inventory, however, by providing a resale exemption certificate to the seller at the time of purchase. Many states require one
Use tax, is a sales tax that is not collected by the retailer. A use tax form should be filed by anyone making a purchase from an online company. Most people don’t realize taxpayers are legally obligated to report the amount of sales tax they did not pay. This should be reported on either their annual state income tax forms or by filing a separate use tax form. There are billions of dollars in unpaid taxes, due to the rapid growth of Internet purchases.
One of the most evident and thought provoking aspects that we see as consumers on a daily basis is the effect of sales tax. The effect of sales tax vary from the examination of how much this tax can increase our purchases. To why there are higher and lower tax percentages based on different purchases. Knowing that this tax is in place determines the actions of both sellers and consumers. With sales tax continuing to evolve and change certain bills such as the Remote Transaction Parity Act of 2015 have been put into place and action.