Why don't automakers lobby to impose sales tax on only the diff in value of the new car you buy and your trade

Answer 1

That's not up to the automakers, it's up to you. Here is a perfect example: Why do you have to pay tax on a used car? The taxes were paid in full on the car when it was brand new!!! What was the "Boston Tea Party" about? Double taxation. These angry people were paying tax on tea to the King of England and to the American Government, so they dumped all the tea in the harbor. We are paying double, triple and even quadruple taxation on lots of things but nobody wants to rock the boat.

It's time to stop taking it.... Why are we paying sales tax at all? Every American I know is losing at least %25 of their wages to tax. Then we are expected to pay for highway use tax on the fuel that we buy (2002 U.S. average $0.42 per gallon , who knows what it is today), then we can pay for the vehicles registration and inspection and don't forget about the toll roads, and you even get taxed extra if you buy a gas guzzler.

Don't forget about Cigarette and Liquor tax, Estate and transfer tax, Conveyance Tax, Gift tax, Controlled substance tax, Fur clothing tax, Insurance taxes, Lawful gambling tax, Mineral taxes, Mortgage registry tax and deed tax, Property tax, Wind energy production tax, Sports bookmaking tax, and School tax.

WHERE IS THE PROFIT???

When is enough enough.......

Answer 2

Thats' not up to the manufacturers. It's up to the individual states. In every state where I have lived and purchased a car that's how it worked. CA, MA, VA, TX, OK, MO all base the sales tax on the net value after trade-in. MO even gives you the break if you sell the old vehicle privately within 90 days of buying the new vehicle!

Answer 3

Guess it depends on which state your are in.

In most states, you are taxed on the difference between the sales price and the trade allowance.