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Guess there is going to possibly be tax on everything again...yay....

  1. Kringkily Omega Collector / Hunter Apr 28, 2015

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  2. Spacefruit Prolific Speedmaster Hoarder Apr 28, 2015

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    I am not a tax expert. However I do understand in USA if an out of state person returns to his state with an untaxed item, or causes a delivery to his address of an item without paying his own state sales taxes, then the taxpayer is obliged to enter those purchases on his personal tax return and pay his local state taxes.

    In practice not many people do, but every now and then art dealers (or similarly placed merchants) get audited and IRS goes to purchasers and sees if sales taxes have been collected.

    So buy a $100,000 sculpture in New York and take it back to (say) Chicago and you are supposed to pay your sales tax at the end of the year through your tax return.

    Now I am not a tax expert, I am however an enthusiastic avoider of investigators and I try not to do things that might interest them.

    Love to hear if my understanding is correct
     
  3. gatorcpa ΩF InvestiGator Staff Member Apr 28, 2015

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    Kinda sorta.

    If I live in New York and go across the border to New Jersey and buy a watch from a brick and mortar store there, I get a credit against New Jersey use tax when I bring it back home. In essence, I'm supposed to pay the greater of the two taxes in total.

    The states absolutely detest e-commerce and particularly eBay, because it is impossible for them to enforce their state's law against a seller in another state without physical presence in that state, The US Supreme Court upheld this principle in the Quill case mentioned in the Forbes article. You are correct that some states ask for a surcharge on state income tax returns for estimated use taxes on internet purchases. There are a few states that have no state income tax, so it is even more difficult to enforce the law in these states. My home state of Florida is one of these.

    The IRS has nothing to do with the collection of state sales tax. They are a federal agency, just like Inland Revenue in the UK. That function is reserved under our Constitution to the governments of each of 50 states, the District of Columbia, Puerto Rico, the US Virgin Islands, Guam, and several Pacific island archipelagos. And yes, some state departments of revenue maintain offices in other states. I've handled state income tax audits from California where the agent was located in Chicago and flew down to Florida to meet with me.

    If I go to a foreign country and purchase an expensive watch there, pay VAT and I'm unable for some reason to reclaim that tax, I get triple taxed. First the VAT, then Customs upon return to the US, lastly the use tax, since foreign VAT or GST is generally not creditable against state sales tax.

    Now you know why tax evasion is virtually a national sport in the US. In some states it is almost impossible to avoid evading taxes, even if you don't want to.

    Isn't being an American fun?
    gatorcpa
     
  4. Spacefruit Prolific Speedmaster Hoarder Apr 29, 2015

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    And my American wife wonders why I don't want a green card....
     
  5. Tiny Iota Could potentially be the Official OF Stalker ™ Apr 29, 2015

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    And why my American wife has to fill in a mound of paperwork every year about her income and bank accounts, despite living in the UK for the last 8 years. Non-resident worldwide taxation...what a joy
     
  6. Fer Seamaster Apr 29, 2015

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    In Spain your actual taxation rate is near 60%: average income tax about 25-30% (but up to 56% for high-payed citizens), VAT 21%, gas, alcohol and special taxes abot 30%, local taxes about 5%, if your father dies and gives you money 20%, if you buy a second hand house 15%, if you have a second house or more than 1 mill eur in cash or investments about 1% of the value (just for owning it!!)... You spend more than half a year working to pay the Government.

    Today is payday in my company; 30% of my income has evaporated due to taxes and social security...

    When you buy a watch abroad i.e. in the States, you pay Spanish VAT when importing (21% of declared value), customs duties (depending on the country of origin. USA is one of the most expensive ones) and customs management tax. In the end, this is up to 40%...

    I do not know how is taxation in USA, but in Spain (and Europe in genera) it is a nightmare.
     
  7. Spacefruit Prolific Speedmaster Hoarder Apr 29, 2015

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    Hong Kong.
    15% income tax
    No capital gains tax
    No Sales tax
    Who needs democracy? ::stirthepot::
     
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  8. JimInOz Melbourne Australia Apr 29, 2015

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    I buy a bottle of standard Laphroig for AUD$100.

    $70 of that $100 goes to the tax man!!!!!

    ::censored::
     
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  9. Tiny Iota Could potentially be the Official OF Stalker ™ Apr 29, 2015

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    Petrol in the UK is the best one. Duties then VAT on top, so you are taxed on the tax
     
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  10. Archer Omega Qualified Watchmaker Apr 29, 2015

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    And the best part is if the US doesn't have similar tax breaks as the country you are in, you have to pay the US tax man even though it might be exempt from taxes where you live. Many Canadians with dual US citizenship are dropping their US citizenship fast. The US does not have an equivalent for our RRSP's here apparently, so many dual citizens are getting hit hard for income on these investments. Nice of Revenue Canada to help the US collect their taxes too...amazing...

    The only solution is to pay up or renounce your US citizenship, and many are choosing the latter.

    I guess that's maybe why Canada is #5 on this list, and the US 15th...

    http://worldhappiness.report/ed/2015/
     
  11. DLT222 Double D @ ΩF Staff Member Apr 29, 2015

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    Well, in terms of claiming the VAT back in the UK its quite easy. You can claim it on virtually everything if you have the receipt. There are companies like Global Blue (i detest) who charge a ridiculous amount as an admin fee something like 5% but it depends on the value of your claim. There is a green HMRC (IRS) form that gives you back 17% when stamped at the airport, it goes straight on o your card of choice, only downside to that is exchange rates.

    I love the green form but not everyone uses it! With GBLUE you end up with 12-14% vat back the rest is admin fees and unrecoverable VAT.

    Hope this helps!
     
  12. blufinz52 Hears dead people, not watch rotors. Apr 29, 2015

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    In NH, where I live and work, there is no income, or sales tax. But if you work in the neighboring state of Maine, they not only tax your income, they also tax your spouses income, even if he/she works in NH. If you live in Maine, but work in NH, they tax your (and spouses) income. We only go t Maine for their nice beaches. Beautiful coastline.
     
  13. cicindela Steve @ ΩF Staff Member Apr 29, 2015

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    For any that did not catch all of that.
    You have:
    State sales tax
    City or County sales tax (in some areas)
    State income tax
    Federal Income tax (US Government)
     
  14. Kringkily Omega Collector / Hunter Apr 29, 2015

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    Come live in NYC. You get it all! :(

    up to 39.6% Fed Income
    up to 8.82% State
    up to 3.876% City Tax
    Total personal income max tax is 52.3%

    Then add on sales tax of 8.875%

    So when I hear European people say oh noooo the tax man! I just shake my head and say atleast you get free health care and awesome benefits...we pay all that here in NYC and get almost nothing...
     
  15. Kringkily Omega Collector / Hunter Apr 29, 2015

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    Oh and some of the highest per sq ft rental/ownership and some of the highest food costs..... I still wouldn't live anywhere else lol
     
  16. gatorcpa ΩF InvestiGator Staff Member Apr 29, 2015

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    Don't forget...

    Real property tax (state and local)
    Tangible personal property tax on business use assets (city and county). Some states apply this to personal vehicles also.
    Gasoline and diesel fuel taxes (federal, state and local)
    Gift tax (on gifts >$14K)
    Estate tax (on estates >$5M)

    Keeps me in business!
    gatorcpa
     
  17. mdgrwl May 1, 2015

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    This would really stink
     
  18. Matty01 Port Adelaide's No.1 Fan May 2, 2015

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    Those are some ugly taxes, if only a chunk of that went back into safety net stuff, ie healthcare etc ...