Tax FAQ
 

Why Do We Tax Production Instead Of Consumption?

Question by B. Goldwater | Posted in Politics

Why do we use production taxes, such as receipts tax, instead of replacing those with more consumption taxes, such as an increased sales tax? Wouldn't this further urge savings and investment that would allow America, as a whole, to grow faster?

If you think otherwise, please illustrate why, as I'm simply curious.

Answer: The expense of a gallon of milk would go up and the people who are in poverty would have an even harder time feeding their children.

With gains taxes, people pay based on the amount of money they make. So theoretically everyone it hit just as knotty with tax burdens. With increasing taxes on consumption, the family who makes $100,000 per year will be skilful to afford the high taxes on milk but the person making $15,000 a year may not.


mymadsky~ Tennessee taxes
 
 

Is There A Sales Or Service Tax Charged For Video Production Services In California?

Question by JustaskinGeez | Posted in United States

Hello, I lend video productions services to a few clients of mine here in California. I am a little confused as to whether or not Video production is lay open to a sales tax in California. I know in most states Services are not taxable, but I am not sure about California.

My services includes production and filming as well as dvd authoring and then the customer receives a final dvd.

Answer: When your bloke receives tangible personal property (a dvd), the entire charges relating to the exchange of that property, including the labor to create it, are taxable.
There are some exemptions for qualified stir pictures. See the link below.
If it's for your client's private use, it's taxable.

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Why Do We Tax Businesses When The Tax Just Slows Production And Is Passed On To The Consumer Anyway?

Question by Buck Ofama | Posted in United States

Proceeds tax, payroll tax, and compliance costs are all built in to the price of the product.
http://www.estate.org/Research/Taxes/c da04-12.cfm

Answer: Because politically, the further the cheat of taxes is removed from the voter, the better.

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Inherited Money From Property Sold With Gas Production. Suggestions On How To Minimize Tax?

Question by greyhaired mama | Posted in United States

How to disparage tax burden on $ "inherited" from property sold to gas companions. Land was deeded to grandchildren about a decade ago. Royalities from gas production have been split evenly during this rhythm. They now have a buyer. How should proceeds be handled after distribution? Is this considered an inheritance? capital close with from sale? Are there certain ways to invest it that are better than other? short-term and extended-term benefits? Pros or Cons?

Answer: If the strength was completed over a decade ago, it wasn't inherited. Even you put "inherited" in refer to marks.

It is long term capital gain. In 2008, some of this is taxed at 0% (if the move ahead plus other income is less than the 15% tax bracket) and the rest at 15%. If these grandchildren are under the age of 24, the taxes may be charged at the parents' status.

The basis of the gift would be the giver's basis at the time of the gift LESS any depletion

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What Would Be The Various Consequences Of This Tax On Both Consumption As Well As Production?

Question by jon | Posted in Economics

To greet such a consumer loss, imagine that you are now tasked with imposing a “surplus tax” on consumers through the extension of an individual sales tax which will be added to the market price of certain goods and services. The proceeds from such a tax will be employed to compensate an equal number of those consumers at the bottom of the demand curve, thereby, giving them the time to consume such goods and services which they otherwise would not have been able to purchase at the specified price.

Answer: It would grossly torture the efficient allocation of resources by shifting them from those who derive the most utility to those who derive the least. Contemplate increasing the price of baseball tickets so that people who value others things more than tickets could securing them. Or collecting a tax on automobiles so that more people could buy autos instead of taking the bus. on what ECONOMIC grounds distant that be justified?

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samvara | Economic Management #3: Production Theory and Costs

tax albatross depends on analogous to sopes of requisition and provide curves with flexible immediately and inelastic equipping, manufacturer pays larger scrap of tax if come up with is vertical (root inelastic), creator pays all the tax if provision is supine... Forethought: Common Work = Q / L (how much we can bring about per white-collar worker) Insignificant Output = difference in Q / replace with in L (how much It looks like Australian Boards are radically discrete to US ones, they call for -peradventure- monthly meetings depending on plane of involvement and have very minute to do with day to day operations....

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