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To: woodbeez
Gross sales have nothing to do with tax savings. Gross sales are only half of the equation. You can have all the sales in the world and have equal expenses and have NO income.
And under the sales tax you'd still owe 23% of your gross sales in taxes even when you have "NO income".
Do you figure your tax liability on your sales or your income?
Your sales ARE your (gross) income. Under the sales tax you'd owe tax on your sales...The income tax is on "taxable income".
331 posted on 09/20/2005 11:05:50 PM PDT by lewislynn (Status quo today is the result of eliminating the previous status quo. Be careful what you wish for)
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To: lewislynn
Your sales ARE your (gross) income.

Yes they are but you don't pay income taxes on your gross income, you pay it on your net income (sales - expenses) under an income tax.

...under the sales tax you'd still owe 23% of your gross sales in taxes even when you have "NO income".

Except that the business with those sales is collecting the NRST from the consumer. State sales taxes are not an expense to the business(beyond the paperwork). Whether you make money or lose money you still have to pay state sales taxes on your sales.

351 posted on 09/21/2005 7:07:45 PM PDT by woodbeez (There is nothing in socialism that a little age or a little money will not cure(W. Durant))
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