Tax man is Unfriendly, Boo Hoo!

Skylune wrote:

If so, by
going out of state to avoid paying the tax, you would be guilty of tax
evasion.

Bull****.

George Patterson
Drink is the curse of the land. It makes you quarrel with your neighbor.
It makes you shoot at your landlord. And it makes you miss him.

I got ya!,
Ask TN how there state sales tax hike is going! Most of us spend our
money in neighboring states for big ticket items to avoid the tax.
Thankfully we don't pay tax on income though.

Patrick
student SP
aircraft structural mech

"George Patterson" wrote in message
news:gSfaf.3508$y23.2599@trndny08...
W P Dixon wrote:

I believe what George is speaking of is the luxury tax on an item like
an airplane, which is at a higher rate than buying your car or food.

Actually, I was using the Federal luxury tax as an example of what is
going on here on the State level. As far as luxury taxes go, it really
doesn't matter what the rate is. Any tax at all will decrease the amount
of product purchased because people don't *have* to buy it. You will find
X number of people who will buy a mink coat at Y amount. Increase the
price by 5%, and X goes down; usually by a lot more than 5%. In any
situation in which much of your revenue comes from an income tax, you've
just lost money because the sellers' income just went down and they just
laid off part of their work force.

If both a sales tax and an income tax are factors, you *have* to
concentrate the sales taxes on necessities like food to achieve a net
increase in revenue. People *have* to buy food.

In the Illinois situation, people who own aircraft can avoid the Illinois
tax on big-ticket maintenance items by taking the plane elsewhere. When
you're talking about someone with a few Citations (or larger aircraft),
you're talking about a big loss to business. The State is losing the
income taxes from the mechanics who used to work there, and is not gaining
much from the new sales tax ('cause people aren't paying it).

George Patterson
Drink is the curse of the land. It makes you quarrel with your
neighbor.
It makes you shoot at your landlord. And it makes you miss him.

by George Patterson Nov 3, 2005 at 03:56 AM


Skylune wrote:

If so, by
going out of state to avoid paying the tax, you would be guilty of tax
evasion.

Bull****.

George Patterson
Drink is the curse of the land. It makes you quarrel with your
neighbor.
It makes you shoot at your landlord. And it makes you miss him.


George: Sorry. Look up what a "Use tax" is. I'm not saying its right
or
wrong, but it applies the sales tax rate to out of state purchases. If
the
state in question has a use tax, and the service or goods purchased out
of
state are subject to the tax, you owe it. Its not well enforced. But
try
going to a state that has no sales tax (e.g. New Hampshire or Washington)
and buying a car. They will charge you your home state's tax -- that is
the "use tax." In fact, this particular tax is usually called the "sales
and use tax" in most states. People just shorten it to sales tax, and many
are not aware the tax is also applicable to out of state purchases.

Skylune wrote:

George: Sorry. Look up what a "Use tax" is. I'm not saying its right
or
wrong, but it applies the sales tax rate to out of state purchases.

Purchases. Not services.

George Patterson
Drink is the curse of the land. It makes you quarrel with your neighbor.
It makes you shoot at your landlord. And it makes you miss him.

George Patterson wrote:
purchased
because people don't *have* to buy it. You will find X number of people who will
buy a mink coat at Y amount. Increase the price by 5%, and X goes down; usually
by a lot more than 5%. In any situation in which much of your revenue comes from
an income tax, you've just lost money because the sellers' income just went down
and they just laid off part of their work force.

If both a sales tax and an income tax are factors, you *have* to concentrate the
sales taxes on necessities like food to achieve a net increase in revenue.
People *have* to buy food.

In the Illinois situation, people who own aircraft can avoid the Illinois tax on
big-ticket maintenance items by taking the plane elsewhere. When you're talking
about someone with a few Citations (or larger aircraft), you're talking about a
big loss to business. The State is losing the income taxes from the mechanics
who used to work there, and is not gaining much from the new sales tax ('cause
people aren't paying it).

Well, the state income tax is 3 percent. It began at 2.5 under Ogilvie,
a Republican and
went to 3% under Edgar, also GOP. There's NO sales tax on Labor, so
only the parts
are taxed.

JG

Steven Barnes wrote:
Yup. We bought our Cherokee 3 months after gov. Rod Blafukusabunch
implemented the use tax. I hope he enjoyed the extra 3 grand he cost us.


Unless there was some special break that I haven't heard of, the sales
tax has been
collected for decades, raised from 5 to 6 percent under Edgar/Thompson,
GOP.

Those special crash trucks with foam cannons are expensive, and not
beneficial
to the general community.

JG

Bah.


wrote in message
ups.com...
"Illinois lawmakers ought to drop the state's sales tax on aircraft and
aircraft parts so the industry can remain competitive, aviation
industry officials said at a meeting at DuPage Airport in West Chicago
Friday.
Ed Green, vice president and general manager of the Springfield- based
Garrett Aviation Service Centers, said 28 states do not have an
aviation tax and 20 states don't tax aircraft maintenance, either.
The taxes, he said, are disincentives for people to buy or service
aircraft in Illinois or to do business here at all.
"You have a mobile product. It's not a captive audience. They can go
anywhere to get maintenance done," he said.

[snip]

Those special crash trucks with foam cannons are expensive, and not
beneficial
to the general community.

Neither are regular fire trucks. Only a few unlucky people need them.

Jose
--
Money: what you need when you run out of brains.
for Email, make the obvious change in the address.

Skylune wrote:
Damn! The FAA really gave Mayor Daley a spanking after he closed Megis.

http://www.cnn.com/2005/TRAVEL/10/26....expansion.ap/

Cha-Ching, those Billion $$ runways are on the way, maybe the old
rubble
from the CGX rr can be used as the base material

Mayor Daley Monday got what he needed to continue with O'Hare Airport's
multibillion-dollar makeover -- federal cash to help foot the bill.

U.S. Transportation Secretary Norman Mineta signed a funding agreement
earmarking $337.2 million to be paid over 15 years for reconfiguring
the airfield, a move aimed at bringing more flights to O'Hare with
fewer delays.

Mineta said expanding O'Hare -- the world's busiest airport -- helps
the national aviation system.

JG

George Patterson wrote:
Skylune wrote:

Why not eliminate sales taxes
on tractors, to benefit farmers?

Apples & oranges here. Light planes are luxury items. Tax them too much, and
fewer get bought. The only way a sales tax can work in conjunction with an
income tax is to tax necessities.

If you can afford to pay $750K for a Bonanza that should cost about a
hundred and fifty grand, you can afford to pay $850K. Once people
decide the tax isn't going away they will pay-the order cancellation
wave occurred because people figured they'd back down.

When the admittedly haples Jiminy Carter was President, his
agriculture man was asked how to save the family farm. He said: Tax
very severely all tractors bigger than a Ford 8N. He quickly added that
was not going to happen.

Bret Ludwig wrote:

If you can afford to pay $750K for a Bonanza that should cost about a
hundred and fifty grand, you can afford to pay $850K.

Bull****.

George Patterson
We don't stop playing because we grow old. We grow old because we stop
playing.