I always repeat myself when it comes to government taxes. When the Republicans are in office I get it in the shorts with big business, when the Democrats are in office I get it in the shorts with the government, but with this current administration, I pay through the nose to big business AND the government.
Remember, the government is suppose to be here to serve us, the U.S. citizens funding their endeavors. If there is not enough money to go around then maybe they should rethink whatever entitlement programs or countries they are giving money too.
My classic example in California is when the state government was going to force Amazon to start charging state taxes even though they had no physical presence in the state. The politician’s lawyers went through the books and looked for every angle to be able to tax Amazon purchases. They finally found a loop hole and said that all the 3rd party people (Associates) in California selling though Amazon would be taxed, Amazon balked at trying to keep track of that, so Amazon canceled the Associate program. Didn’t really hurt Amazon’s bottom line, but once again, I caught it in the shorts by not being able to sell through Amazon any more.
The end story is that Amazon did a deal with the California government, where they started charging tax to Californians and they would build some big distribution centers in California if they were allowed huge tax breaks. California politicians said they did it to help balance the playing field for big stores like Best Buy. What happened is that people just stopped ordering as much through Amazon and Best Buy sales are still in the tank. It helped no one but get a few more dollars in the tax bin to spend on a California High speed rail train in the middle of the desert that benefits no one.
Want another crazy one? You ever wonder why fast food places ask to whether the order is for Dine In or take out ? Its not just to package it, something is taxable if you Dine In vs. things that are not taxable for take out ? Sound confusing ? You are right it is, here is the California publication stating what and when can be taxed for food and drinks.
No matter where you live, always say take out to protest this insanity. The government (which we pay for) has lawyers and people who are looking through codes and regulations to tax and fine me, where is my protection ?
Another prime example, is if I buy an item on sale that was originally $100 and now on sale for $50 I pay the tax on the $50 price which is expected. When I go into a cell phone store and upgrade my phone for the subsidized price of $99, but the original full price of the phone is $600, I pay the taxes on the $600 price. You just know that the loop hole favors both the business and the government, how am I suppose to get an equal shot at legislation that favors John Q. Public ?