I have often thought about the number of times we pay Tax on a good in the USA. Example: A seed producer charges tax upon selling the seeds to a farmer. The farmer grows wheat and again pays tax on selling is wheat to a bread maker. The bread maker sells loafs of bread to a store and pays a tax. The store sells the bread to the consumer and we pay tax. This is just an example and some think I have often thought about we paid 4 to 5 times tax on the same item.
2007-08-08 02:18:46 · 6 answers · asked by bjg76522 2 in Business & Finance ➔ Taxes ➔ United States
Nope you don't understand our tax laws. We don't have a GST in the US we have a sales tax.
The farmer doesn't pay taxes on his seeds, neither does the baker or the store. And you don't pay sales taxes on the bread either because it's a staple.
Unlike Canada and Europe, the US doesn't have a GST, which puts a tax throughout the whole production process. In the US some states impose a sales tax, the tax is on non-essential goods and serives and is only imposed upon the end consumer.
2007-08-08 03:41:26 · answer #1 · answered by joe s 6 · 0⤊ 1⤋
When the farmer pays his taxes on what he got for his wheat that he sells, he subtracts the price of the seed that he bought from his income before figuring his taxes. The breadmaker subtracts what he paid for the wheat from his income from the bread before he figures his - and so on down the line. So at each step, the person is only paying taxes on the ADDITIONAL value for the item he is selling, not the whole value, and not on the value that's already been taxed.
2007-08-08 02:51:06 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
Nothing in the Constitution states that taxes are mandatory for the government to collect. Remember the slogan "TAXES WITHOUT REPRESENTATION" the by words that started the revolution against England.
However, in your example you are misled. If an item is purchased and resold, the taxes are not paid twice. The original purchaser who puts the item into his final product gets a deduction on his taxes when filed. Even a product that is bought and resold from a distributor has the same consideration. Again, a distributor can get from the state a resale license which exonerates him from paying the tax in the first place.
2007-08-08 02:30:58 · answer #3 · answered by BS_answers 2 · 0⤊ 1⤋
So stop paying all of your taxes. My cousin in the Federal Corrections Department needs the work.
2007-08-08 03:14:51 · answer #4 · answered by ? 6 · 0⤊ 0⤋
People keep asking about constitutionality of paying taxes, and time and time again yahoo answers keeps saying yes it is.
2007-08-08 03:41:58 · answer #5 · answered by Anonymous · 0⤊ 0⤋
YES YES YES YES YES YES YES YES
2007-08-08 02:21:56 · answer #6 · answered by Anonymous · 2⤊ 0⤋