On Tue, 22 May 2001 [EMAIL PROTECTED] wrote:
>
> Dan wrote:
> >Sonja wrote:
>
>
> >>Besides companies get the most part of their taxes paid on fuel
> >>back.
>
> >Care to cite a source on that? I don't know what is done in Europe
> >but that as far as I know that is a false statement for the US. Any
> >US Brin-L person is more than welcome to correct me here. Truckers
> >don't get checks from the state of Texas reimbursing them for the
> >cost of the state road tax.When I drove fleet cars at work, I paid
> >the tax. The only exception is farm machinery that is not run on the
> >roads.
>
> Aren't gas and other travel expenses deductable if it's above a
> certian % of income? Not that that would refund you most of the
> money.
I think the way it goes (and it's been some time since I saw a Schedule C,
so I may be off) is that you list the total income of the business
enterprise, and then list the various expenses, broken down by type; there
are caps on how much you can deduct on some things, but I think that fuel
would be uncapped. You total up the allowable expenses, subtract from the
total income, and that's your net income.
When the taxes on fuel go up, the net income goes down. The net income is
what you're living on if you've got a sole proprietorship (which is what a
Schedule C is for), and if you don't have enough to live on, you may go
out of business. Or if the fuel taxes go up enough, you could even end up
with negative income (i.e., loss) and you're in trouble when it comes to
paying some of the other business expenses.
You don't get the refund on the taxes paid on fuel, except for
agricultural use. That money is gone. That means you probably end up
paying less taxes on the income that's left, but that's no consolation if
the taxes have gone up to the point where you're running at a loss.
> >>Also taxes on goods are lower or non existent for companies.
>
> >Please cite a source on this. Particularly for the US. I'd love to
> >see it, because my little company pays taxes on goods. :-)
>
> In Ca. items bought for resale are exempt from sales tax.
Same in Texas. (And "items" can include "bandwidth".) But items bought
for internal use are not. And I think you have to pay sales tax on stuff
that you assemble into stuff you sell, but it's been SO long since I was
anywhere near the loop on anything like that, I don't remember. (Plus
which, I just don't remember some things I ought to this week.)
Julia
