Where does the money to run the state come from? NH has no sales tax, but has very high property taxes. Delaware has some toll roads, but those shoppers are not paying that much to make up for the loss of sales taxes. Are they getting enough in corporate taxes? Delaware is a big state for incorporations.
OK, gotcha. Yes, that is one reason local retail shops are going away. They have higher overhead and generally charge higher prices even if they don't have to. It is also possible that with his volume, he is paying a higher price than the internet retailer too.
Major appliances have changed over the years. Local stores could not compete with the big box retailers. Now, most belong to co-ops and buy at lower prices and can be very competitive. If I'm buying a $2000 refrigerator, I'd be happy to pay $50 more from the guy up the street that I know will give me a good delivery experience and long term service. I'm not willing to pay hundreds more though.
Just had a $3,400 refrigerator delivered today. We bought it from a large chain store that had the same price as everyone else (fair traded) but they had it "in stock" locally. Even Lowes would have taken 3-4 weeks (they took that long last time we bought one - same model). The delivery crew was excellent. A "local" couldn't have done better.
At one time people were transfixed watching OJ and Tawana Brawley, too. Both were about as legitimate, policy wise, as this mess.
You mean, like California?
Good question. I can't find the actual distribution of income, but there is income tax which can run up to 7%, the corporate income as you mention, casinos at race tracks. There is a small transfer tax that sellers pay and it is something like a quarter of a percent. License fees, car registration fees, a transfer tax on a new car maybe 3%. Property taxes go to the counties and schools. All in all, taxes are lower then neighboring states of PA, NJ and MD. In a housing development on the PA border a house in PA will pay twice the property tax as Delaware's.
I agree. Now, millions of people know they don't have to run away.
Stop it! You're killin' me.
Good point. In my view, states should rely on voluntary contributions.
They are, after all, a charity writ large.
Article in today's paper clarifies Delaware somewhat.
One third of state expenditures comes from corporate taxes.
Surprisingly 12% comes from escheat. (I had an inactive credit union account a couple of years ago and got notice that since I had not done anything for 5 years, if I didn't do something, the State would get it. I withdrew the $100 or so in it and closed it out.)
Add the lottery, casinos, gas and cigarette taxes etc means that less than half of Delaware's income is from income tax.
Last year, as a retiree over 65 on exempt SS and mostly exempt pension, my share was only about 0.5% of my income but 4% went to local property taxes. Franchise tax for my little S corp was $125.
Tax wise, it is cheaper to live down state. My son's father in law with a house about the same as mine pays only half the tax. He says big difference is that lower county is ruled by Republicans vs Democrats where I live ;)
On Sat, 7 Apr 2012 16:28:21 +0000 (UTC), HerHusband wrote Re Re: Colorado buyers saved from Amazon tax:
Excellent description of why on-line retailing is beating the heck out of B&M retailers. It has nothing to do with sales tax or even shipping costs. It's all about selection, convenience and delivered (to the door) cost. In all three of those criteria, on-line retailers have mostly IMO taken the lead.
But it is still unreasonable that a local brick and mortar merchant MUST be a tax collector and a online merchant doesn't.
Exactly, and requiring a local merchant to be a tax collector and not applying the same requirement to online merchants is totally unfair.
But the likes of Best Buy are a good place to take a peek at the merchandise before buying. A number of smart phone apps even make this comparison easy. BB has noticed, too.
The online merchant does have to be a tax collector for all jurisdictions he operates in. Why should he be a tax collector for jurisdictions he doesn't do business in? The purchaser is required to pay the use tax. Is it the merchant's fault the buyer is a tax cheat?
Why should a retailer with no presence in a jurisdiction be required to do the work of that jurisdiction? They have the laws and the means to collect but don't want to bother doing the work.
Wow, I'd never guess that much. I always wondered how people could forget about money. Then I got a letter from an insurance company (second notice yet) that my pension from a job I left in 1970 would go to the state in 90 days if I did nothing. The company move and then went out of business a few years later and I never thought about a pension. It was a $4500 lump sum! Glade they were able to track me down.
No, the both do the same thing, just a different scale. If the internet retailer has a "presence" in your state, they will collect salves tax on all sales shipped to that state. If your local B&M stores ships a product out of state, he is not obligated to collect any tax for anyone.
The internet store will collect tax on products sold in the state they are set up in and any other state they may have an office or warehouse.
Same rules apply to both. One of my favorite took stores is Coastal Tool here in CT. If I order on line, I pay the tax. Even with tax, they are a better buy than most every other place.
It was a big surprise. I let my wife do the banking and this was only account left in my name only, left over from my working days. She's got money spread around between several accounts in 3 or 4 banks. I know some accounts have no activity and now I'm wondering if an inactive account in a bank where other accounts are active might be stolen by the state.
Googling escheat Delaware, I can't say I am too happy with this:
This isn't anything, new either. We'd buy stuff in other states and have it shipped back w/o sales tax at least since the mid-80s
You misuderstood him He really, REALLY wants SYG laws to be reversed. Apparently he feels that people should be forced to run away when out and about, and braced by a criminal.
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