Raising Taxes Question
|
I am curious to know the answer to this question. When the government raises taxes on something, and states a specific date that the taxes will go into effect, does that mean if the price of the taxed items goes up...and it's claimed because of the tax increase....before the tax goes into effect, who gets the money? For example, on 4/1 the tax on cigarettes was raised 60 some cents. But I've been paying that same raised price for several weeks now. So on 4/1 when the tax went into effect, the price of my cigarettes, where I purchase them, did not raise. So what was that 60 some cents for before the 1st? More profit for the cigarette vendor? Are they required to turn that additional amount over to the government if it was collected before the effective date of the tax increase? Anyone know the answer to this? 
|
Depends on who raised the price, the vendor, the distributor, or the manufacturer.
The money did not go into the coffers of the government though, it went to the entity that raised the price no matter why they claimed to be raising it.
No the government did not collect the extra until 4/1 and they do not collecte the additional charged prior to 4/1.
There are a million reasons not to do something, you just need to find the one reason to do it.
My next question would have to be then, is it "legal" to raise the price before the effective date, claiming that is the reason the price has been raised? Isn't that fraud? I'm talking about raising the price on something, due to taxes, 3 weeks before it legally goes into effect.
The tobacco company's and vendors all raised their prices early to make up their calculated numbers of how many people will quit in order to soften their losses. An added bonus to them was that they knew the public would blame it on the tax raise. Another example was the last minimum wage increase. Everything on a fast food restaraunt went up a nickle. The employees were already making more than the increase. Guess who profitted on the increase and guess what the the public blamed it on.
The prisoner wishes to say a word.............Freedom!!!!!!!
To CC-Gal
Best way to eliminate the cigarette tax.
Stop smoking.
To K-9 Mike
As long as they continue to make cigarettes, someone will smoke them, and pay the cigarette tax. I'm not sitting over here bitching about the cigarette tax. I'm investigating the possibility of fraud. You know all about that, right?
Is it legal for the vendors distributing a product to raise the price by the exact amount that is anticipated at a future date, tell the public that the raise is going to a specific place, and then pocket the money that is collected before that increase takes place? It's not that they said they feel like raising the cost to maintain their profit. They said it was because of the tax that was being implemented at a future date.
When Gas America raised their prices a few weeks ago, customers were told that the tax increased, and that another one would be coming in a few weeks. I anticipated having to pay an additional 62 cents plus sales tax when I went to buy a pack of cigarettes on Wednesday, but surprise, they didn't need to raise their prices since they already had, and there was no second tax increase.
I realize that there is nothing I myself can do about it, even short of quitting smoking. This is something that I am questioning, and wondering just how often it is happening.
I think it is called free enterprise. Don't think business want government telling them any more than they do.
The value of persistent prayer is not that he will hear us . . . but that we will finally hear him. —William McGill
I'm not talking about just raising prices to make a profit. I'm talking about raising prices to pay a tax that is not in effect. Basically, lying. Should that be part of free enterprise? Lying to the consumers?
If they specifically told you the tax increase was in effect I would have walked and gone someplace else where it was not in effect.
I would wonder too, if they had been charged the increased price from their vendor. If that was the case, they would have to pass it on.
Too many questions.
The value of persistent prayer is not that he will hear us . . . but that we will finally hear him. —William McGill
I buy hubby's cigarettes at Gas America too....was told that Indiana started the tax thing early and that they were not going to increase the price on April 1st.....so far they haven't.
What?? You can't understand what I am saying? I am speaking plain penguin!!
And that's not true, either. Indiana didn't start it early, because it was all over the news on the 31st that it would go up (in Indiana) on the 1st of April.
The vendors did raise the price early, according to Gas America, but they were also under the impression at the time that it would raise again on the first. They were surprised when it didn't go up again. All this discussion has been taking place at the one on Ohio and Jefferson.