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Most People Are Supposed To Pay This Tax. Almost Nobody Actually Pays It.
National Public Radio's Planet Money ^ | April 16, 2013 | Chana Joffe-Walt

Posted on 04/16/2013 9:25:07 PM PDT by 2ndDivisionVet

The majority of Americans have now filed their taxes. And the majority of Americans have done so incorrectly.

There is one mistake, in particular, that lots of people made: They bought tax-free things online or in another state — and they failed to pay tax on their purchase in their home state.

It's called a use tax. As far as I can tell, accountants and tax lawyers are some of the only people who pay it.

Forty-five states have a use tax. About 1.6 percent of the taxpayers in those 45 states actually pay the use tax. So I figured I'd ask a representative of that particular 1.6 percent to explain this thing most of us are supposed to be doing every year.

"Its a lot of fun," Daniel Gottfried, a lawyer at Rogin Nassau in Connecticut, told me. "I go through my credit card receipts ... page by page."

He finds something he bought from Amazon last May for $22.98. He didn't get charged sales tax on the purchase, which means he owes the state of Connecticut $1.40 for that purchase.

Gottfried spends hours adding up all these charges in a spreadsheet. He not only has to find all his online purchases; he has to figure out which online sellers already charged him sales tax, and which didn't.

He owes the use tax for the online retailers that didn't already charge him. But, this being the tax code, there are exceptions for everything from college textbooks to firearm safety devices....

(Excerpt) Read more at npr.org ...


TOPICS: Business/Economy; Computers/Internet; Government
KEYWORDS: ecommerce; internet; overkill; taxes; taxreturn; use; usetax
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Dream on, bureaucrats.
1 posted on 04/16/2013 9:25:07 PM PDT by 2ndDivisionVet
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To: 2ndDivisionVet

It will be a moot point now that pretty much tax-free purchases online are about to go the way of the Dodo Bird.


2 posted on 04/16/2013 9:27:04 PM PDT by dfwgator
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To: 2ndDivisionVet

Register your legacy firearms.


3 posted on 04/16/2013 9:27:09 PM PDT by Paladin2
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To: 2ndDivisionVet

Haven’t been able to buy anything online here in California for some time now without the seller adding California sales tax, no matter what state the sale was made in.


4 posted on 04/16/2013 9:28:17 PM PDT by Mastador1 (I'll take a bad dog over a good politician any day!)
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To: 2ndDivisionVet

Tax avoidance is a patrotic duty.
More more more that’s all these POS proggys can say.


5 posted on 04/16/2013 9:28:29 PM PDT by Drill Thrawl (The Progs are pushing for war. Be ready.)
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To: Paladin2

I’ll jump right on that.


6 posted on 04/16/2013 9:28:58 PM PDT by doc1019 (There is absolutely no difference between pro-choice and pro-abortion.)
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To: doc1019

check’s in the mail......


7 posted on 04/16/2013 9:41:21 PM PDT by C. Edmund Wright (Tokyo Rove is more than a name, it's a GREAT WEBSITE)
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To: 2ndDivisionVet

Let’s just dump the Tax Code and replace it with a flat tax of 17% (Milton Friedman’s rate) after a $10,000 per person deduction. The IRS Tax code would be 1 page instead of 66,000 pages. And if I hear Obozo or any other person say: “The rich get to take advantage of all the loopholes.” Gees, people...who do you think put those loopholes there in the first place? It’s the same people who make asinine statements like this and we elected them. And, Mr. Buffet, if you really don’t think you’re paying enough in taxes, open your checkbook and write a check for an amount that makes you feel warm and fuzzy and then STFU. The rest of us are having a pretty hard time of it out here without you idiots flying off at the mouth.


8 posted on 04/16/2013 9:42:31 PM PDT by econjack (Some people are as dumb as soup.)
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To: 2ndDivisionVet
We pay it. The DNC constituents, don't but we do. In fact as a Democrat, if you don't pay them the president gives you a medal.

Or like Marc Anthony, you are asked to sing at the DNC national convention.

9 posted on 04/16/2013 9:43:14 PM PDT by NoLibZone (None here can be puzzled by why Jews walked into the cars so quietly- we are walking up the planks.)
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To: 2ndDivisionVet

This is the way they used to justify your inheirent criminal background so they can send you to the Gulag at any time for any reason.

I hope you didn’t forget to write off all the taxes already paid on salestax, cigarette tax, booze tax, &c. Oh and 0bozocare... is it a TAX? or a Fine? Who cares, you are going to TO THE GULAG!


10 posted on 04/16/2013 9:49:21 PM PDT by Rodamala
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To: Paladin2
Register your legacy firearms, so they may promptly confiscated.

Fixed it.

11 posted on 04/16/2013 9:51:57 PM PDT by Rodamala
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To: Rodamala
This is the way they used to justify your inheirent criminal background so they can send you to the Gulag at any time for any reason.

And then you get the privilege of paying the Gulag Tax.

12 posted on 04/16/2013 9:53:50 PM PDT by OneWingedShark (Q: Why am I here? A: To do Justly, to love mercy, and to walk humbly with my God.)
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To: Rodamala

Well, the gov’t could always encourage your kids to self report....


13 posted on 04/16/2013 9:55:06 PM PDT by Paladin2
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To: Rodamala

Not the biggest Ayn Rand fan, but this quote from Atlas Shrugged was dead on:

Did you really think we want those laws observed? said Dr. Ferris. We want them to be broken. You’d better get it straight that it’s not a bunch of boy scouts you’re up against... We’re after power and we mean it... There’s no way to rule innocent men. The only power any government has is the power to crack down on criminals. Well, when there aren’t enough criminals one makes them. One declares so many things to be a crime that it becomes impossible for men to live without breaking laws. Who wants a nation of law-abiding citizens? What’s there in that for anyone? But just pass the kind of laws that can neither be observed nor enforced or objectively interpreted – and you create a nation of law-breakers – and then you cash in on guilt. Now that’s the system, Mr. Reardon, that’s the game, and once you understand it, you’ll be
much easier to deal with.


14 posted on 04/16/2013 9:55:42 PM PDT by dfwgator
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To: Paladin2
Well, the gov’t could always encourage your kids to self report....

...or report to the family doctor how many guns are in Mom and Dad's household.

15 posted on 04/16/2013 9:57:57 PM PDT by Rodamala
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To: dfwgator

We apparently live in interesting times.


16 posted on 04/16/2013 9:58:27 PM PDT by Paladin2
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To: econjack

Your flat tax with only a 10k exclusion taxes the crap out of me and we wouldn’t have enough to live on after taxes!

I would have to pay over 7,000 in taxes and currently with the current deductions I only pay 1,500.


17 posted on 04/16/2013 10:05:38 PM PDT by dalereed
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To: 2ndDivisionVet

The amount of taxes people pay are already over the top.


18 posted on 04/16/2013 10:09:46 PM PDT by Republican1795.
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To: 2ndDivisionVet

The amount of taxes people pay are already over the top.


19 posted on 04/16/2013 10:09:50 PM PDT by Republican1795.
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To: 2ndDivisionVet

Amazon sent me a statement of my online purchases for 2012 and reminded me that I owed my state sales tax on that amount.


20 posted on 04/16/2013 10:10:45 PM PDT by JohnBrowdie (http://forum.stink-eye.net)
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