Monday, December 07, 2009

the biggest scam in the states seems to be the sales tax.

let's see you buy an item and you pay a tax for it? Ok I kinda agree with this so far. Than you take this item and sell it again. What happens to the buyer? He has to pay sales tax.

This translates into the following (fictive) example.

 person A buys a motorcycle and pays 10k dollar for it. The sales tax is 10%, so 1000$
 person A sells this bike to person B for 8k dollar, the sales tax is 800$
person B sells this bike to person C for 4.5k dollar, the sales tax is 450$
person C sells....

so for one item you the state got a total of 2250$ in taxes so far. Does this seem fair?

yes I had to pay sales taxes today for 'jasmine' And no I'm not happy about it. I just paid sales tax for my Passat 7 month ago...


Anonymous said...

... which is the reason that the sales person, lets call him Mr.B., should have "sold" it to you for $300 making it a $30 in sales tax. You can still give him $9700 in "donations".

Gert Wohlgemuth said...

sadly the DMV knows about this scam and checks the sales prices against the KBB and if it's off to much can demand a higher tax.

So it doesn't work. You can only cheat by such a small margin +/- 1000 - 1500$ that's it's mostly not worth the trouble