Tax man is Unfriendly, Boo Hoo!

My annual is coming due. Where can I go near Chicago where it won't be
taxed? I know Indiana taxes sales so assume they also tax maintenance.

Tax man is Unfriendly, Boo Hoo!
by George Patterson Nov 2, 2005 at 06:20 PM


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.

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: U seem to be a reasonable guy, and your punch lines (Drink is the
curse of the land....) are awesome. But, are you seriously proposing
applying the sales and use tax to pharmaceuticals, groceries and
clothing, while having nonessential purchases such as light aircraft
exempt?

All I am saying is that purchase of an aircraft (and maintenance) should
be subject to the sales tax. Exempting it distorts economic behaviour and
means that other sectors must be taxed more heavily, in order to compensate
for the "tax expenditure." (Notice the period inside the quotation mark
-- I don't want criticism here!)

Tax man is Unfriendly, Boo Hoo!
by "Paul kgyy" Nov 2, 2005 at 10:26 AM


My annual is coming due. Where can I go near Chicago where it won't be
taxed? I know Indiana taxes sales so assume they also tax maintenance.

Fly into O'Hare would be best. They have spare capacity. Indiana
probably has a use tax (I can check for you if you'd like). If so, by
going out of state to avoid paying the tax, you would be guilty of tax
evasion. Now I know the states generally don't enforce the use tax very
well (except for new auto purchases), but if they become aware of big
ticket items that are escaping their tax structure, they will sometimes
act.

Correct me if I am wrong here George,
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. If one
must pay taxes on something he purchased then let him pay the same rate as
everyone else, not be singled out because of the item. One might even say
that is discrimination.
And for the record I do not think prescriptions or food should be taxed
at all for the consumer.

Patrick
student SP
aircraft structural mech


"Skylune" wrote in message
lkaboutaviation.com...
Tax man is Unfriendly, Boo Hoo!
by George Patterson Nov 2, 2005 at 06:20 PM


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.

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: U seem to be a reasonable guy, and your punch lines (Drink is the
curse of the land....) are awesome. But, are you seriously proposing
applying the sales and use tax to pharmaceuticals, groceries and
clothing, while having nonessential purchases such as light aircraft
exempt?

All I am saying is that purchase of an aircraft (and maintenance) should
be subject to the sales tax. Exempting it distorts economic behaviour and
means that other sectors must be taxed more heavily, in order to
compensate
for the "tax expenditure." (Notice the period inside the quotation mark
-- I don't want criticism here!)

"Skylune" wrote in message
lkaboutaviation.com...
Tax man is Unfriendly, Boo Hoo!
by George Patterson Nov 2, 2005 at 06:20 PM


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.

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: U seem to be a reasonable guy, and your punch lines (Drink is the
curse of the land....) are awesome. But, are you seriously proposing
applying the sales and use tax to pharmaceuticals, groceries and
clothing, while having nonessential purchases such as light aircraft
exempt?

All I am saying is that purchase of an aircraft (and maintenance) should
be subject to the sales tax. Exempting it distorts economic behaviour and
means that other sectors must be taxed more heavily, in order to
compensate
for the "tax expenditure." (Notice the period inside the quotation mark
-- I don't want criticism here!)


Oh S-lune, you have proven that you nothing of aviation and now you have
widened your cluelessness into economics. Any tax distorts economic
behavior. If you are a government and are making say $1million on the
payroll taxes of people working in the aviation industry. If you then put a
tax on the purchase of aircraft you will have a drop in the sales of
aircraft which will cause there to be less than projected income from the
purchase tax as well as lower income from the original payroll tax.

George Patterson 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.


besides, it is a lot easier to take an aircraft out of the state
than a tractor...

--Sylvain

by "Gig 601XL Builder" wr.giacona@coxDOTnet Nov 2, 2005 at 02:36
Oh S-lune, you have proven that you nothing of aviation and now you have
widened your cluelessness into economics. Any tax distorts economic
behavior. If you are a government and are making say $1million on the
payroll taxes of people working in the aviation industry. If you then put
a
tax on the purchase of aircraft you will have a drop in the sales of
aircraft which will cause there to be less than projected income from the

purchase tax as well as lower income from the original payroll tax

by "Gig 601XL Builder" wr.giacona@coxDOTnet Nov 2, 2005 at 02:36 PM


"Skylune" wrote in message
lkaboutaviation.com...
Tax man is Unfriendly, Boo Hoo!
by George Patterson Nov 2, 2005 at 06:20 PM


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.

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: U seem to be a reasonable guy, and your punch lines (Drink is
the
curse of the land....) are awesome. But, are you seriously proposing
applying the sales and use tax to pharmaceuticals, groceries and
clothing, while having nonessential purchases such as light aircraft
exempt?

All I am saying is that purchase of an aircraft (and maintenance)
should
be subject to the sales tax. Exempting it distorts economic behaviour
and
means that other sectors must be taxed more heavily, in order to
compensate
for the "tax expenditure." (Notice the period inside the quotation
mark
-- I don't want criticism here!)


Oh S-lune, you have proven that you nothing of aviation and now you have
widened your cluelessness into economics. Any tax distorts economic
behavior. If you are a government and are making say $1million on the
purchase tax as well as lower income from the original payroll tax."


Wow, You really need to stick to aviation. Define "payroll tax" and how
this differs from an Income tax. What on earth is a "purchase tax?" No
state in the nation has that, nor does the federal government. And when
you say "any tax distorts economic behaviour," that is simply incorrect.


The question here is whether airplane purchases should be exempt from
sales taxes. Not whether "luxury taxes" should be re-imposed: these also
distort economic behaviour (in the oppposite direction as subsidies or tax
exemptions, obviously).

Quick Econ 101 recap: A tax which is broad based (i.e. limited
exemptions) with a low rate does not distort economic behaviour.

Skylune wrote:

All I am saying is that purchase of an aircraft (and maintenance) should
be subject to the sales tax.

And all *I* am saying is that the current method of taxing maintenance of
aircraft in Illinois is *costing* the State money instead of producing revenue.
That's the real world, and that makes it a poor tax. The State was making more
money before the tax was incorporated, and they will make more within a few
years of repealing it. If they retain it, fewer and fewer people will pay it
(they'll take their planes to another State with lower taxes), more and more
businesses will go under, and less and less income tax will be collected.

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.

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.