Essential Economics for Politicians

Hüsker Dü said:
WOW! I'm surprised the plumber runs a business (or does he?). This is a very easy concept to grasp.
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I could be wrong, but I have always believed that the price of parts charged to a customer is always subject to retail sales tax. Is that not true for plumber-installed parts?

Maybe a craftsman can just charge for his services and roll the parts in for free. I honestly don't know.
 
espola said:
I could be wrong, but I have always believed that the price of parts charged to a customer is always subject to retail sales tax. Is that not true for plumber-installed parts?

Maybe a craftsman can just charge for his services and roll the parts in for free. I honestly don't know.
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Plumbers don't do anything for free.
 
Hüsker Dü said:
Plumbers don't do anything for free.
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If he paid retail (and thus the sales tax) for the parts he is using, the State has already gotten their bite. There used to be a way for those holding a valid business license to avoid the sales tax on things purchased for eventual resale to a retail customer - is that still the case?
 
espola said:
If he paid retail (and thus the sales tax) for the parts he is using, the State has already gotten their bite. There used to be a way for those holding a valid business license to avoid the sales tax on things purchased for eventual resale to a retail customer - is that still the case?
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If a plumber resells a part for more than he buys it for, then he needs to pay the sales tax over and above any tax he may or may not have paid at the wholesale level.
If this hypothetical plumber wants to calculate the tax on the inventory he hasnt sold yet and send it in ahead of time, that would be perfectly legal as well.
The government never complains about taxes paid early.

If the hypothetical gas station did the same thing, I dont see a problem.
I am not a tax professional.
I have professionals advise me on what is legal.
 
espola said:
If he paid retail (and thus the sales tax) for the parts he is using, the State has already gotten their bite. There used to be a way for those holding a valid business license to avoid the sales tax on things purchased for eventual resale to a retail customer - is that still the case?
Click to expand...
Wrong.
 
espola said:
If he paid retail (and thus the sales tax) for the parts he is using, the State has already gotten their bite. There used to be a way for those holding a valid business license to avoid the sales tax on things purchased for eventual resale to a retail customer - is that still the case?
Click to expand...
I know ole Joe the plumber didn't have one of those, a valid business license . . .
 
Ricky Fandango said:
If a plumber resells a part for more than he buys it for, then he needs to pay the sales tax over and above any tax he may or may not have paid at the wholesale level.
If this hypothetical plumber wants to calculate the tax on the inventory he hasnt sold yet and send it in ahead of time, that would be perfectly legal as well.
The government never complains about taxes paid early.

If the hypothetical gas station did the same thing, I dont see a problem.
I am not a tax professional.
I have professionals advise me on what is legal.
Click to expand...
So who is paying the new gas tax, the seller (gas station operator) or the buyer (consumer)?
 
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