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Sales Taxes Article
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Purpose of Sales Taxes
from:Since each state operates independent of the Federal government for the most part, they must find their own ways to generate income in order to provide goods, services, and a governing body for its people. The implementation of sales taxes is one way that states are able to meet their budgets. Of course, those on the receiving end of the deal—the consumers—do not see it as a fair trade, especially since most states also charge a state income tax as well.
Which tax is fairer to the low income? That depends where you live. In states that have exemptions for food, most clothing, and prescriptions, the lower income will benefit because the items that must have will not be subject to sales taxes. On the other hand, in states that charge sales taxes on nearly everything you buy, the exchange is not as equitable, especially if they also charge sales taxes on unprepared food. Where should one draw the line on sales taxes? Should there be a set of exemptions that are common to each state? Many states are losing millions and maybe even billions in revenue where they are surrounded by states that have no sales tax or a lower sales tax with more exemptions. With no sales tax in Delaware, people flock in from Pennsylvania, New Jersey, Maryland, and even New York for tax-free shopping. The revenue they would lose from eliminating the sales taxes would be made up in the gross receipts tax generated from an increase in revenue. You might also add that to the number of jobs retailers generate for the state by need for additional employees.
Are sales taxes as much of an income earner as the states think? Look at the big picture—when people have minimal cash, they will avoid things that cost more than the face value. How many people put their money aside and wait until they go visit friends or relatives in a tax free or lower-tax state to save money. It's always about the money for the consumer, but unfortunately, the states have quite gotten the picture. Like many people in big business, they see only what is happening today and are unable to see how a different approach could turn the chain of events into something more profitable for everyone. They have projections of how much income they want to generate from each type of tax instead of an overall picture that would allow them to reorganize as much as necessary to accommodate the changes in the economy. Sales taxes can be replaced with something more profitable, but until the states are able to see farther into the future, nothing will be done about it.
Sales Taxes News
Harrisburg Receiver Ponders Sales, Tax Boost in Fiscal Plan - Bloomberg
 Patriot-News | Harrisburg Receiver Ponders Sales, Tax Boost in Fiscal Plan Bloomberg Harrisburg's receiver outlined a plan to aid the Pennsylvania capital's fiscal recovery by selling assets, raising taxes and fees, and winning concessions from municipal unions. Receiver David Unkovic will update the proposal submitted today with more ... Pennsylvania city's receiver warns on revenue need |
Proposed Internet Sales Tax Changes - WILX-TV
 Allentown Morning Call | Proposed Internet Sales Tax Changes WILX-TV Business owners like Jamie Robinson, who owns Bestsellers, a bookstore in Mason, say it's just unfair Internet retailers don't collect sales tax. "It definitely is unfair," Robinson says. "A 6% advantage is a large portion of a price of a book. Do you pay sales tax on Internet purchases? Retailers, State of Michigan want ... Pennsylvania to Collect Sales Tax From Amazon Pennsylvania ramps up efforts to collect sales tax from online shoppers ... |
Lawmakers cautious about sales tax idea - Columbia Daily Tribune
 Columbia Daily Tribune | Lawmakers cautious about sales tax idea Columbia Daily Tribune By Rudi Keller Overhauling Missouri's tax system would create uncertainty in troubled economic times, two Columbia lawmakers said today to the man pushing conversion to a sales tax-only system. During a forum sponsored by the Show-Me Institute, Sen. Legislative Leaders Voice Reservations on "Fair Tax" |
Sales tax revenue down for Houston - Houston Herald
Sales tax revenue down for Houston Houston Herald Sales tax revenue collected by Houston merchants dropped by about 13 percent in the first monthly distribution of the year. The total from a one-cent sales tax was $51067, which was down about 13 percent - or $7881 from a year ago - from the previous ... |
Georgia will vote in increased Sales Tax - WTVM
Georgia will vote in increased Sales Tax WTVM By Katherine Kington - bio | email COLUMBUS, GA (WTVM) – While taxes are top of mind right now, On July 31st, people in Georgia will have the option to vote for an increased sales tax. The increase will be used towards funding transportation projects ... Sales tax referendum backers say suggested tax increase vital to future |