Tax Cuts and Speeding Tickets - DPChallenge Forums

06/09/2009 01:44:05 PM · #1

link

This is an interesting article regarding the direction of tax policy for the US future. If a VAT is enacted our 8x10 prints will cost more to buy and we will need to collect the VAT from our customers.

i'm curious -- those of you in countries with a VAT, is it a PITA? Or is it just like collecting sales tax for those of us in the US? (which is also a PITA).

Now to really spin this into a Rantastic thread:

1) My "Tax Cut for 95% of Working Americans" was a $2.30 DEDUCTION from my weekly pay! Huh??? I wasn't expecting an increase in take home pay under President Obama's new plan, but a deduction! Anyone else have the same experience?

2) What is up with all the California Highway Patrol officers and their increased traffic enforcement? Since California's budget meltdown last summer, CHP are everywhere! Radar Guns from behind trees, groups of two or three patrol cars teaming up on the freeways, etc. I'm all for public safety but i suspect $$$$$ is the motivation for their ramped up enforcement. Shouldn't they be enforcing traffic laws regardless of the budget situation? Anyone else across the fruited plain notice this phenomenon?

That is all--i feel so much better. ;) I'm still pissed about the $2.30, but I'll get over it. And no, I haven't received a traffic ticket in over 10 years.

Strikeslip

Canon EF 100-400mm f/4.5-5.6L IS

06/09/2009 02:15:12 PM · #2

I believe the VAT is like the GST (Good and Services Tax) here in Ontario.

I charge my clients GST at the rate of 5%, and turn around and give 3.3% of that to the government on my first $30,000 earned in the year. After that $30,000 barrier has been passed,the payout to the government increases to 4.3%.

So I quite like it, as I'm being paid to collect taxes for the government.

It is very easy for me, as I use "The Quick Method", which I was required to sign up to use. Otherwise you have to use "The Long Method" in which you have to track all of your "Input Taxes" and write them off against the payout to the government. Since I do consulting, I have very little in the way of input taxes, so the quick method is very nice for me.

Not long ago, GST was 7%. I think the government is working on promises to phase it out. I won't hold my breath.

I pay quarterly, and file annually. But since I pay through my online banking, the government receives a form as if I've actually filed quarterly. So every quarter I get a notice from the government that I've filed but didn't need to so they're discarding it. Fucking waste, but it gives me a laugh as they're such paperwork-whores, and I hate paperwork.

================

2

Tell me about it, the saga of my speeding ticket up here will be continuing for months. :-D

Art Roflmao

Canon EOS-6D Mark II

Canon EF 24-105mm f/4.0L IS

06/09/2009 02:20:20 PM · #3

1. Campaign / Political rhetoric is inversely proportional to reality.
2. It's a CHP shakedown.

Apple iPhone 5

06/09/2009 02:24:44 PM · #4

The way VAT works here is that businesses charge customers 21.5% VAT on goods and services. There are some exemptions like training and certain food items.

At the end of every 2 months the total VAT collected is off-set against the total VAT paid on purchases and the difference is submitted to the government. VAT liability = VAT on sales less VAT on purchases

For example. Pretend I've had a slow month, and only two transactions occured;

1) I buy a PC for the company costing â�¬1200 + 21.5% VAT = â�¬1458

2) I invoice a customer for services â�¬2000 + 21.5% VAT = â�¬2430

My VAT payable to the government at the end of the month is therefore â�¬430 - â�¬258 = â�¬172 total liability.

And yes, VAT is a PITA.

Carl Zeiss 50mm ZE f/1.4 Planar T for Canon

06/09/2009 02:48:28 PM · #5

slippy~ why don't you invoice your customer's at the 7% rate? Extra profit for you! The scenario that one could make money by collecting taxes for the govmt sounds to good to be true! haha. I guess the extra revenue is offset by the increased expense of each daily transaction.

JH~ which country are you in?

Art~ I'm pretty sure you are right!

yanko

Canon EOS-5D Mark II

06/09/2009 02:48:42 PM · #6

Originally posted by Art Roflmao:

1. Campaign / Political rhetoric is inversely proportional to reality.

Obama lied? No way! Maybe it was just a teleprompter malfunction?

Apple iPhone 5

06/09/2009 02:51:07 PM · #7

Originally posted by mpeters:

JH~ which country are you in?

Ireland

BeeCee

Nikon D40

06/09/2009 02:52:06 PM · #8

Originally posted by mpeters:

Ummm... because that wouldn't be legal? (Though I don't know how much that would matter to Slippy ;) )

06/09/2009 02:52:47 PM · #9

Originally posted by yanko:

Originally posted by Art Roflmao:
1. Campaign / Political rhetoric is inversely proportional to reality.

Obama lied? No way! Maybe it was just a teleprompter malfunction?

kickstart the rant machine ;)

Apple iPhone 5

06/09/2009 02:52:59 PM · #10

Originally posted by yanko:

Originally posted by Art Roflmao:
1. Campaign / Political rhetoric is inversely proportional to reality.

Obama lied? No way! Maybe it was just a teleprompter malfunction?

Count yourself lucky it wasn't a wardrobe malfunction.

06/09/2009 02:54:27 PM · #11

Originally posted by BeeCee:

Originally posted by mpeters:
slippy~ why don't you invoice your customer's at the 7% rate? Extra profit for you! The scenario that one could make money by collecting taxes for the govmt sounds to good to be true! haha. I guess the extra revenue is offset by the increased expense of each daily transaction.

Ummm... because that wouldn't be legal? (Though I don't know how much that would matter to Slippy ;) )

I didn't really word my post correctly---wouldn't the govmt want slippy to collect 7% and send them 5.3 or 6.3%? BTW: i would never insinuate that slippy would do something illegal. :)

Strikeslip

Canon EF 100-400mm f/4.5-5.6L IS

06/09/2009 03:04:34 PM · #12

Originally posted by mpeters:

Originally posted by BeeCee:

Originally posted by mpeters:
slippy~ why don't you invoice your customer's at the 7% rate? Extra profit for you! The scenario that one could make money by collecting taxes for the govmt sounds to good to be true! haha. I guess the extra revenue is offset by the increased expense of each daily transaction.

Ummm... because that wouldn't be legal? (Though I don't know how much that would matter to Slippy ;) )

I didn't really word my post correctly---wouldn't the govmt want slippy to collect 7% and send them 5.3 or 6.3%? BTW: i would never insinuate that slippy would do something illegal. :)

Bastages! :-P The rate used to be 7%, but was moved down to 5% by the graciousness of the government. So now, when I buy a sexual aide I pay the price, plus 5% GST plus 8% PST (Provincial Sales Tax). For a total to 13% added onto every dang penis enlarger I buy. Better than when it was 7% GST plus 8% PST = 15% total taxes on my specialty items.