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View Diary: The Problem with Sales Tax (13 comments)

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  •  Here's the squiggle: B&M sales taxes are assessed (2+ / 0-)
    Recommended by:
    DRo, ManhattanMan

    based on the address of the seller, not the buyer.

    Public Finance courses are replete with tales of cities and towns vying to be the location of new commercial development - not for the property tax (which they frequently forgive in wooing the retailer) but for the sales tax revenue. See, e.g., Santa Ana v. Costa Mesa over the mall on their border, or countless auto mall and Walmart locations.

    Sales taxes are appealing because, while regressive, they are unfair in shifting revenue among communities. There is nothing so sweet in the community of communities as getting non-residents to pay for the services provided to residents.

    Too late for the simple life, too early for android love slaves - Savio

    by Clem Yeobright on Wed May 01, 2013 at 03:24:54 AM PDT

    [ Parent ]

    •  Only on small purchases (0+ / 0-)

      Where it would be ridiculous to track and process tiny amounts.  But go buy a car in another state.  You are exempted from tax in the seller locale and forced to pay your own state tax when you register.  

      Cars are big enough to make this worth it and not something your average citizen is frequently purchasing.  

      Красота спасет мир --F. Dostoevsky

      by Wisper on Wed May 01, 2013 at 04:01:33 AM PDT

      [ Parent ]

      •  Read twice, respond once. (0+ / 0-)

        My comment dealt with sales tax receipt allocation within a state, not across borders.

        Too late for the simple life, too early for android love slaves - Savio

        by Clem Yeobright on Wed May 01, 2013 at 04:12:45 AM PDT

        [ Parent ]

        •  I don't see that your comment is restricted to (1+ / 0-)
          Recommended by:
          Clem Yeobright

          intrastate sales tax allocation. It seems to me that the issue is the same for interstate purchases also.

          You can't scare me, I'm sticking to the Union - Woody Guthrie

          by sewaneepat on Wed May 01, 2013 at 05:39:56 AM PDT

          [ Parent ]

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