Not to mention sale tax which for me I have to pay on materials sold in Texas.
Skip
Printable View
Not to mention sale tax which for me I have to pay on materials sold in Texas.
Skip
As a commercial business in the State of Texas... I have to collect and remit state sales, pay federal excise tax, income tax and property tax(on inventory, materials and tools). It takes a lot off the top...
Michigan is very similar. I had to collect State Sales tax, and remit to the state, pay the federal excise tax, income tax etc...
I did sit down and talk to someone once in regards to the 720 excise tax. My specific question was: If I buy hooks (and pay a tax on it) and I buy paint (and pay a tax on it) and then I make a jig, have I not already paid the tax. The answer was actually right in the 720 information. Once you alter an existing product in any way shape or form, the tax get applied again!
At least with custom rods they did away with the 10% and went to a flat rate simply because guys were getting around it by having customers purchase all the materials and then simply charging for labor to put them together.
I once did a break down of exactly what I made per jig compared to some of the competition in my area. Someone was complaining online about how expensive the prices had risen to (my prices were the lowest). After that, my orders skyrocketed but I had to choke back tears. For about a week after that, I would finish a jig sold for 50 cents and say, "well, I just made 10 more cents"!!!
Heck don't we all? I mean other than the Excise tax, think everyone in business of any kind has that same stuff! I do still pay Excise tax on some materials since the guys I buy from charge it to me. So I pour no jig heads and don't tie for selling, but still tax is eating everyone to death and thankfully now out income tax will drop. but all the rest still hang in. I pay in taxes every year and I even have to pay Social Security tax on any oil wells that I opted to participate in the production end of it which cost me an additional 15% just on that part.Quote:
Originally Posted by fishfried
Enough taxes!!!!!!!!!!! Getting to be time to do something about our tax issues other than the income tax.
Skip