i hate taxes.
March 2, 2004 12:53 PM   Subscribe

Ever hear of a "tangible tax law"? Chances are, you haven't. Florida doesn't have an income tax, so it makes up for it by having something called a tangible tax. The state of Florida taxes businesses for property they ALREADY OWN that could be used to generate income...on top of a 5.5% corporate tax rate. Many Floridians own their own businesses, a percentage of which are sole proprietorships (like me doing freelance work) and so won't owe state or corporate income taxes, yet will have to pay because of this law. Many of you have experience with property taxes, which are the most common form of Ad Valorem tax, but if you own a business or do freelance work, I suggest you educate yourself.
posted by taumeson (10 comments total)
 
Sounds like you're getting Bush whacked.
Too bad you're not obscenely wealthy or a major corporation like Disney, then you would get away tax free in Florida!
posted by nofundy at 12:56 PM on March 2, 2004


well, I think it's older than jeb's tenure...but if this Nebraska timeline is any indication, then it hasn't been around for too much longer.
posted by taumeson at 1:03 PM on March 2, 2004


well, I think it's older than jeb's tenure
Been sending tax software for the past 13 years that dealt with this issue.
posted by thomcatspike at 1:06 PM on March 2, 2004


Ad valorem taxes can be ugly (forcing fixed-income individuals out of their homes), as can sales taxes (regressive). Unfortunately, people just hate income taxes. Here in Washington state, we have one of the most regressive tax structures in the nation simply because the popular opinion is irrationally opposed to an income tax. Everything keeps getting added to the sales tax, which is rapidly approaching 10%. Even those who would benefit from a switch to income taxation oppose it, however. They don't notice the government taking their money away when it's done only a few dollars at a time...
posted by mr_roboto at 1:17 PM on March 2, 2004


10%??? Psssht.

In Canada, it's fifteen percent, plus 40% of my paycheque.

Plus others.

Not that I would have it any other way.
posted by jon_kill at 1:31 PM on March 2, 2004


They tax intangible property, too.
posted by trharlan at 1:34 PM on March 2, 2004


In Missouri my business paid a 6.25% state income tax AND a St. Louis personal property tax. And a 1% payroll tax, payable by both the company and the employee.

You're not alone.
posted by F Mackenzie at 1:37 PM on March 2, 2004


Surely that's a mistake, jon. While the base rate may be 40%, most Canadians have a lot of tax credit options that bring the rate to well under 25%. In recent years, I've not been above 20% when all is said and done.
posted by five fresh fish at 4:14 PM on March 2, 2004


the best thing is that i have no idea how to find out my tax liability. oh sure, i'll eventually find it, but it's irrational to believe that everybody has access to the internet or an accountant. i mean, seriously, i know some landscapers and contractors and sportfishing charter captains who don't use either, and they might be SCREWED.

i've been using turbotax for a while, and it does my schedule C and all that for my business...but i don't remember anything about tangible tax...especially because i've only filed federally and it never said to print out anything for state.
posted by taumeson at 5:20 PM on March 2, 2004


Yeah, quit bitching.

If you manage to earn more than a measly $8000 clams a year in Canada you get hit with all kinds of taxes. I'd say "Thank God I don't pay any", but that wouldn't make sense, would it? At least I won't ever have to pay EI.

BTW: Canada is "smart" about sales tax. As taxes like the GST are paid first by the shop on goods, under the table deals have to have GST incorporated into them.
posted by shepd at 1:17 AM on March 3, 2004


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