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To: GoLightly

As a matter of fact, YES


395 posted on 08/02/2004 4:51:28 AM PDT by Froggie
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To: Froggie
I don't know which state you're in or if your state has a sales tax situation as convoluted as mine. I also don't know what kind of business you ran, so don't know if you ever ran into the mess I've dealt with.

Manufacturing, sales for resale, sales outside of the taxing authority... Exempt business to business transactions & people will say it's unfair & will call it corporate welfare. Charge a sales tax on business to business transactions, you build in multilevel taxation & taxes paid on taxes.

We gonna charge sales tax on real estate? If we are, the price of real estate goes up overnight & the correction would be ugly.

Manufacturing gadgets is more labor intensive & has lower raw material costs than making widgets, so our new economy encourages manufacturing gadgets over widgets. Raw material owning manufacturing companies gain an advantage over the companies that need to purchase raw materials. Picture fewer businesses & larger ones. A car company that buys a steel company will have a natural advantage over car companies that don't own one, unless, we go the business to business transaction exemption route.

Some businesses do well, some adjust, some move elsewhere & some go out of business. It's the way of the world. Think our government responds to it in any way or do they keep their hands off & let the dust settle in whatever way it settles?
463 posted on 08/02/2004 9:02:30 AM PDT by GoLightly
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