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Dayton's business-to-business taxes would clobber some, hurt all.
How about a sales tax on those electronic pulltabs that are so popular. ;)
Love this. For years and years the Strib and its editorial board has been very liberal in calling for new revenues for the state to balance its books. BUT soon as it might affect their bottom line they start back pedaling like there's no tomorrow. NIMBY anyone? That the Strib has not found a means to survive in the new digital age (that's only been around for what, 25 years?) they should get a pass on paying taxes? Riiiiiiiiight.
Business services sales tax is being looked at in a lot of states....with both Dem and GOP Gov's.....get over it!
I've never seen the Star Trib come out against a tax they didn't approve of since I've been reading it beginning in the 1970's. Oops, I guess this one is different because they actually have skin in the game for a change. Just enforces my belief about liberals and their hypocrisy.
The one that bothers me is the clothing tax. There are some places we should never go and that's one of them. What's next: food?
When the Value Added Tax (VAT) was implemented in European countries, it was well understood that taxes paid on business services would have to be deductible from taxes paid on the products sold ultimately to the public. Frans' proposal ignores the unfair double taxation that would occur if business services are taxed without allowing those taxes to be deducted farther down the revenue stream. I'm afraid our Revenue Commissioner is just plain unknowledgable about the structure and implementation of taxes. Dayton should remove him from office immediately, and do some public penance for the self-evident idiocy of this proposal.
Service taxes, especially in an economy increasingly driven by services, are increasingly a necessity, and there is no reason to regard business to business activity as untouchable here. Far from it, as so much of those services fall into that category. There is a simple way to shield businesses that provide services to out-of-state clients who might be competitively hurt by a Minnesota sales tax: the tax is paid only on services provided to in-state clients. Likewise, require out-of-state providers of that service to collect the Minnesota sales tax for their clients in Minnesota. Thus it's fair to competition for out-of-state business and fair for in-state businesses competing with others outside of our state.
Economics 101: ALL taxes are eventually borne by the consumer.
I've said it before and I'll say it again, over half of the accounting services purchased are for the purpose of complying with the tax laws. So the Governor wants to tax individuals and businesses because they need help to prepare their taxes correctly. (and this includes Minnesota sales tax, which, for many businesses can be very complex) It makes a tax on accounting services seem rather unfair. The authors also point out that the sales tax is difficult to pass on to consumers, and again, this is correct. Those of us with small businesses know this all too well. So, Mr. Dayton, please try to be like the rest of us, and manage your budget.
How can passing the sales tax along to customers be difficult? When figuring a customer's bill, find the subtotal and add the appropriate amount of tax to the total. If a customer balks, the business is simply collecting the tax that the state has levied. If you're talking about taxes the business itself pays for items or services, those a part of the cost of doing business and should be figured into the price structure just like any other expense.
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