- Joined
- Jan 13, 2012
- Messages
- 11,524
- Reaction score
- 6,769
- Location
- Las Vegas
- Gender
- Undisclosed
- Political Leaning
- Other
I might be a "slow student" but I've been self-employed for over 40 years. I would consider a profit margin of 8% (let alone 1% to 2%) to be ridiculously low and if that's all that businesses (retail) make in modern times, this will be quite a burden. I know that NV gives you a small rebate to cover compliance costs but collecting for 47 states seems a bit daunting, that's why i suggested earlier that the tax be collected in the state where the sale is made as opposed to the state the product is shipped to.
I'm very unhappy about this new situation since I buy most of my products online, since we have almost no privately owned businesses here. I'm a proud cheapskate and 8.125% is enough to annoy me into changing my shopping habits. If my memory serves, there was original legislation that prevented the states from collecting sales tax on internet sales, so really they are just reverting to the pre-legislation era. Since the states can't print currency, I suppose this will help them provide higher salaries for State employees. Maybe the'll fix the damn roads. Who knows?
I'm very unhappy about this new situation since I buy most of my products online, since we have almost no privately owned businesses here. I'm a proud cheapskate and 8.125% is enough to annoy me into changing my shopping habits. If my memory serves, there was original legislation that prevented the states from collecting sales tax on internet sales, so really they are just reverting to the pre-legislation era. Since the states can't print currency, I suppose this will help them provide higher salaries for State employees. Maybe the'll fix the damn roads. Who knows?
I believe the typical profit margin for retailers is ~8%, so yea, if the top line cost of compliance works out to be 1%, then your income has just been reduced from $80K to $70K. That's a rather large impact...
I was pondering when I eating dinner the profits margins of a clothing store which is about 1%- 2% when my mind wondered back to this bill. I just thought I would share the problem that came to me when eating is all.
Good evening, AP.:2wave:
It seems to be your sad lot in life to teach Economics 101 to slow students forever.:doh