sales taxes will soon be deductible

[CPA]

Originally posted by: FoBoT

Originally posted by: CPA

Originally posted by: FoBoT

Originally posted by: ElFenix

Originally posted by: FoBoT
what is the basis for this inflammatory claim?

ok maybe its only us 7 states that don't have income taxes

i do not currently live in

Besides Washington, the states are Tennessee, Florida, Nevada, South Dakota, Texas and Wyoming.

😛

I do. Man, I was glowing after I read this this morning.

well, another benefit is this will drive increased tax preperation services next year 😉
people won't know how to properly get this $ back without professional help

you're right, I'm a double winner! 😀

 

[CPA]

Originally posted by: vood0g
are they talking about the 7.25% tax (in TX) on purchases?

yes, or in my case 8.25%

 

[CPA]

Originally posted by: Hammer
i heard this was in the works a while back and i saw that the senate bill that passed yesterday had it as a rider. anyways, i have been saving my receipts all in year in anticipation of this. 😀

The nice thing is that you don't even have to save your receipts. You can use a scaling system instead. Of course, I will pass on that system because I bought an Avalanche this year and paid $3300 in tax alone on that thing.

 

[RU482]

what an accounting nightmare. Sure your gonna save some cash, but saving those receipts, and then adding all that sh!t up at the end of the year would suck ass

 

[KK]

Originally posted by: MogulMonster
:roll: Not in WI, of course. I have to pay WI sales tax on non-taxed internet purchases, suchas Newegg or Amazon. That can really start to add up.

Why is that?

 

[Ausm]

Originally posted by: ElFenix

Originally posted by: Yzzim
why in the world would it be deductible?

why are state income taxes deductible? i dunno, but they are. us sales tax states have been getting the shaft for years

N.S try living in Wisconsin...is in the top 5 every year for the highest tax.


Ausm

 

[Ausm]

Originally posted by: KK

Originally posted by: MogulMonster
:roll: Not in WI, of course. I have to pay WI sales tax on non-taxed internet purchases, suchas Newegg or Amazon. That can really start to add up.

Why is that?

Because there is a line for delaring how much back internet tax you owe the government....They can kiss my ass on that one 😉

Ausm

 

[HeroOfPellinor]

Originally posted by: ElFenix

Originally posted by: z0mb13
No love for CA?

🙁

you've had your state taxes deductible for the past 20 years while we haven't. f-off.

We can deduct property tax, but not sales tax afaik.

 

[Phoenix86]

Originally posted by: Yzzim
why in the world would it be deductible?

Because sales tax is the way the state makes income (at least in Texas) as opposed to state income tax. Why would you want the dame dollar taxed twice (federal and state sales)? Remember, states with state income tax have been deducting that from federal for a long time.

This is just evening up the states that don't have state income tax, in favor of higher sales tax.

 

[Shelly21]

Originally posted by: Phoenix86

Originally posted by: Yzzim
why in the world would it be deductible?

Because sales tax is the way the state makes income (at least in Texas) as opposed to state income tax. Why would you want the dame dollar taxed twice (federal and state sales)? Remember, states with state income tax have been deducting that from federal for a long time.

This is just evening up the states that don't have state income tax, in favor of higher sales tax.

I agree, you shouldn't be taxed twice for the same dollar. But I always thought that's where the "standard deduction" came in. At anyrate, this is going to be tedious. oh well.

 

[Hammer]

Originally posted by: redly1
what an accounting nightmare. Sure your gonna save some cash, but saving those receipts, and then adding all that sh!t up at the end of the year would suck ass

not tedious at all. all you got to do is hand it all to your accountant. 😀

 

[ggnl]

Originally posted by: Yzzim
why in the world would it be deductible?

Because state income tax is deductible from your federal income tax. In states with no income tax they often have higher sales taxes to make up for it. The sales tax is a de facto income tax and therefore should be deductible.

 

[SaltBoy]

Originally posted by: Phoenix86

Originally posted by: Yzzim
why in the world would it be deductible?

Because sales tax is the way the state makes income (at least in Texas) as opposed to state income tax. Why would you want the dame dollar taxed twice (federal and state sales)? Remember, states with state income tax have been deducting that from federal for a long time.

This is just evening up the states that don't have state income tax, in favor of higher sales tax.

Yes, but I've also heard that the property tax could go down in another response. I'd hope so!

 

[SacrosanctFiend]

Woohoo, that 9.25% tax rate it pissin me off.

 

[tw1164]

This is crazy, TN doesn't even have income tax (except for investments etc..), and now they have a chance to deduct their 7.25 (+ local sales tax?) taxes?

 

[FoBoT]

Originally posted by: tw1164
This is crazy, TN doesn't even have income tax (except for investments etc..), and now they have a chance to deduct their 7.25 (+ local sales tax?) taxes?

that is the point

in states where there is a state income tax, the $ paid to the state in income tax has been deductible from federal income tax

in states that have no income tax, the people have not been allowed to deduct the only state tax (sales tax) that they have been paying from federal income tax

this is supposed to "even the playing field" on state tax deductibility

 

[ElFenix]

Originally posted by: Ausm

Originally posted by: KK

Originally posted by: MogulMonster
:roll: Not in WI, of course. I have to pay WI sales tax on non-taxed internet purchases, suchas Newegg or Amazon. That can really start to add up.

Why is that?

Because there is a line for delaring how much back internet tax you owe the government....They can kiss my ass on that one 😉

Ausm

you're mad that you can't cheat on your taxes as easy? nice.

 

[z0mb13]

wait, CA has both state and federal tax, and our sales tax is not deductible

so how is this evening the playing field?

 

[ElFenix]

Originally posted by: Shelly21
I agree, you shouldn't be taxed twice for the same dollar. But I always thought that's where the "standard deduction" came in. At anyrate, this is going to be tedious. oh well.

you can only take the standard deduction if you don't itemize. if you do itemize, in states with income taxes you can deduct your income taxes. now things are somewhat more even.

in short, the standard deduction has nothing to do with the principle of not taxing the same dollar twice (though that is somehing that is really only applicable within one layer of the tax system, not the multilevel system we have)

 

[FoBoT]

Originally posted by: z0mb13
wait, CA has both state and federal tax, and our sales tax is not deductible

so how is this evening the playing field?

well, not perfectly, but it is closer than before

i have no idea why they would only apply it to those 7 states, those crazy politicians are so unpredictable! :roll:

 

[ElFenix]

Originally posted by: z0mb13
wait, CA has both state and federal tax, and our sales tax is not deductible

so how is this evening the playing field?

because you've been able to deduct at least some of your state taxes for the last 20 years while we haven't been able to deduct any. so it is more even.

ideally tho, either no other taxes should be deductible or all other taxes should be deductible.

 

[z0mb13]

Originally posted by: ElFenix

Originally posted by: z0mb13
wait, CA has both state and federal tax, and our sales tax is not deductible

so how is this evening the playing field?

because you've been able to deduct at least some of your state taxes for the last 20 years while we haven't been able to deduct any. so it is more even.

ideally tho, either no other taxes should be deductible or all other taxes should be deductible.

I still dont get it

texans dont pay state income tax, but they still play fed tax

CA pay BOTH state income and fed tax

now sales tax is deductible in texas??

someone please explain to me why this is fair?

 

[tw1164]

Originally posted by: FoBoT

Originally posted by: tw1164
This is crazy, TN doesn't even have income tax (except for investments etc..), and now they have a chance to deduct their 7.25 (+ local sales tax?) taxes?

that is the point

in states where there is a state income tax, the $ paid to the state in income tax has been deductible from federal income tax

in states that have no income tax, the people have not been allowed to deduct the only state tax (sales tax) that they have been paying from federal income tax

this is supposed to "even the playing field" on state tax deductibility

But what about states that have income tax, and sales tax?

 

[ElFenix]

Originally posted by: z0mb13

I still dont get it

texans dont pay state income tax, but they still play fed tax

CA pay BOTH state income and fed tax

now sales tax is deductible in texas??

someone please explain to me why this is fair?

you state income tax is deductible. it isn't entirely fair but it is an improvement. i don't know why they did it for just states that have no income tax.

and we have been getting raped for the last 20 years. don't forget that.

 

[z0mb13]

Originally posted by: ElFenix

Originally posted by: z0mb13

I still dont get it

texans dont pay state income tax, but they still play fed tax

CA pay BOTH state income and fed tax

now sales tax is deductible in texas??

someone please explain to me why this is fair?

you state income tax is deductible. it isn't entirely fair but it is an improvement. i don't know why they did it for just states that have no income tax.

and we have been getting raped for the last 20 years. don't forget that.

yes our state tax is deductible, but we STILL have to pay state taxes! I dont think u can deduct it to zero