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WE DON'T HAVE SALES TAX ! [ Fri Apr 3 2009 10:30 PM ]
Why are we paying sales tax in New Mexico, when we DON'T have sales tax? I would like more people to understand what Gross Receipts Tax IS! The law states, that it is a tax for the privilege of doing business in New Mexico. AND, it is the responsibility of the BUSINESS OWNER to pay the tax, and NOT THE CONSUMER! If a business owner makes $10,000 for the month, he pays a percentage of that amount, (Gross Receipts) to the state as a tax for doing business in this state. Now,,,,,WHY would he charge you,the consumer, a tax on top of that? He THEN has to send the state YOUR tax, PLUS the tax he owes on the $10,000 he made! ANY business owner KNOWS full well, that if you refuse to pay the tax he adds on to your bill, there's nothing he can do to make you pay it, because we DON'T have sales tax in New Mexico, and the tax is his responsibility!!! What I'd like to know, is how can we get someone to work on this, to make the public aware of the fact that they DON'T HAVE TO PAY the sales tax? We need to have some kind of a "NO SALES TAX" card for the public to carry, to show to businesses, with the law printed right on it. NOTHING YOU BUY HAS TO HAVE SALES TAX ADDED TO IT! How much would we all save by not having to pay this tax? AND,,,,,WHY is what we've paid, not deductable??? Let's get this going. Help me if you can, please. We're wasting our money! Thanks for reading.
There's nothing to prevent businesses from raising their prices 7%, either.
How much would we all save by not having to pay this tax?
If by "not having to pay" you mean repeal NMGRT, then: a few percent (until the legislature enacted a new tax somewhere else to make up for their budget shortfall).
If by "not having to pay" you mean NMGRT is not itemized on your receipt, and is instead just secretly included in the price, then: zero.
Personally, I like when taxes are very explicit and itemized in-your-face. That's what keeps us conscious of them.
If you're angry about businesses charging higher prices to help mitigate their cost of doing business (increasing their prices to help cover the gross receipts tax) then are you angry as well about helping a business pay their employees, electric bills, heating bills, lease, etc.? Do you think these costs of doing business should also not be passed to the consumer since the business is responsible for these charges? If you itemize for gross receipts then wouldn't it be just as valuable to get an itemized bill for all of the business's expenses?
customer to business's employee: "I see here on my receipt that you are charging me an additional $1.00 so you can get paid this week... Don't you think that's a little expensive?"
employee: "uhhhh...no. But it is hard to see the receipt since the power got shut off after people refused to pay a bit more so we can have electricity..."
Something tells me that the consumer will always have to foot part of the cost of doing business... including gross receipts tax.
that the tax code states that it's the responsibility of the business owner, and NOT the public, to pay the tax. It's so sad, that most don't understand what I'm talking about. Yes, they COULD change the wording, and I would be fine with that, and they SHOULD. BUT, THE WORDING, IS WHAT TELLS ME THAT I DON'T HAVE TO PAY THE TAX!
to cover their federal taxes, too. I suppose, in a sense, they do; they just don't itemize it like they do GRT.
I think it's crazy that a business has to have such a giant profit margin just to cover taxes.
We are ALL paying double tax. They are charging us, what we're NOT liable for! When a business totals their monthly income, minus the tax they have charged us, THAT'S what they owe the Gross Reciepts Tax on! NOW,,,, what do they do with the tax we have paid them? They have to send THAT in, TOO! We are paying what we don't owe. Can anyone else see that?
We pay our GRT taxes with it. Duh. Yes, we pass the cost on to you, the consumer of the product or service. Some businesses don't do that so they can have nice round totals or becauser they're stupid or whatever. But no one is being double-taxed.
He THEN has to send the state YOUR tax, PLUS the tax he owes on the $10,000 he made!
This is just not the case. You're confused.
When a business totals their monthly income, minus the tax they have charged us, THAT'S what they owe the Gross Reciepts Tax on!
Yeah, no kidding. And we pay it with the surcharge we put on our goods and services that adds up to exactly what we owe. If you don't like it, find somebody who works under the table.
Here's something else you probably won't like: Sometimes a business owner decides not to turn those GRT dollars over the the tax people right away. Then he pays interest and penalty on that amount whenever he finally does pay it. So GRT dollars can be used as a line of credit at a so-so interest rate for a period of time. In the end, the government wins by getting even more money out of the transaction. In the short term, the taxpayer gets to use the cash.
AND,,,,,WHY is what we've paid, not deductable??? Let's get this going.
If you itemize instead of taking the standard deduction, you can deduct the greater of the sales tax you paid or state income tax.
" In the end, the government wins by getting even more money out of the transaction. In the short term, the taxpayer gets to use the cash."
How the hell does THAT make sense?
"If you itemize instead of taking the standard deduction, you can deduct the greater of the sales tax you paid or state income tax."
You can either deduct the sales tax you paid on all the items you bought throughout the year (even on the cup of joe you occasionally purchase if you keep the receipt) or the tax you paid to the state for working. I don't make up the rules. That's just how it is. You were asking why the sales tax you've paid is not deductible. I'm letting you know that it can be if you spent more in sales tax than what you've paid in state income tax. Look at Schedule A of the tax return if you don't believe me.
I am taxed on every penny I make,(Income Tax).But why should I NOT be able to deduct the tax that I pay when I SPEND my money? My money, is being taxed on both ends. That money is being taxed again. Doesn't it make sense to be able to deduct the sales tax?
Thanks for hangin with me here, ChiKung.
The money you earn gets taxed, then gets taxed again when you spend it, then gets taxed again at the place you spent it as someone else's income, then gets taxed again as they spend it. That's a lot of money for the government.
But if you consider that the government puts that money back into the economic system by creating jobs, funding the upkeep of our cities, and donating to causes like finding a cure for cancer that benefits the whole of society, what's paying a little sales tax going to hurt?
That's exactly the way they WANT us to think. It's like the people who say:
"I don't mind DWI checkpoints. If we have to give up a little freedom to be safe, then it's worth it. If I'm not drunk, there's nothing to be worried about!" THAT'S exactly what the GUBMENT wants, so that the next time they want to take more from us,,,we'll already be used to losing "A LITTLE!"