Political News and Commentary with the Right Perspective. NAVIGATION
  • Front Page
  • News
  • Multimedia
  • Tags
  • RSS Feed


  • Advertise on RightMichigan.com


    NEWS TIPS!

    Get the RightMighigan.com toolbar!


    RightMichigan.com

    Buzz

    Who are the NERD fund donors Mr Snyder?

    Raise the curtain.

    Display: Sort:
    The demarc . . . (none / 0) (#7)
    by Kevin Rex Heine on Thu May 30, 2013 at 08:49:17 AM EST
    . . . is handled in the proposed implementation language.  I don't have that in front of me (and can't seem to find it on my laptop right now), but if my memory serves me correctly, a "business-to-business transaction" assumes that the parties to the transaction are each participating under at least a D.B.A., if not an LLC or a full-blown corporate identity.  In other words, such a transaction has to happen under the cover of at least two business licenses (or something similar, such as a church's tax exempt status or an active C.T.E. account).

    Could I, hypothetically, go through all of the paperwork to set up a "shell LLC" and use that as a cover to make all of my household purchases tax-exempt?  Sure, in theory.  But sooner or later someone's going to notice that I'm making some purchases that seem awfully odd for a company, and that there isn't any business volume coming across my books.  This will be followed by a visit from "Uncle Andy" (or whoever's serving as the State Treasurer at the time), with some questions that I don't have answers to.  The next thing you know, I'm getting fitted for a prison jumpsuit.

    The last I checked, there's about a 1.6% shortfall between expected sales tax revenue reported and actual sales tax revenue collected, so I suppose that it's not a stretch to infer that something hinky is going on somewhere.  The upside to going to a consumption-based model of taxation is that there're fewer collection points to keep track of (every business license, as opposed to every resident), so catching tax fraud should be more efficient.

    Parent

    Display: Sort:

    Login

    Make a new account

    Username:
    Password:
    Tweet along with RightMichigan by
    following us on Twitter HERE!
    create account | faq | search