Monday, November 06, 2006

Stepping Up the Game

Today I go and apply for my first business license. My husband and I want to install a credit card processer onto my website, so that customers have more payment options. To make that happen I first need the license so that I can open the DBA account at the bank that the merchant account folks require.
I'm told it's all pretty simple and straightforward.

The downside is that this once again changes the way I pay taxes. Filing my taxes was so easy and consistent for the first 12 years or so of my adult life. Then I started having to account for inventory and cost of goods sold, then I bought a house, then I got married etc...
Everytime I think I have it down, I have to learn something new.
With the business license, I'll be filing quarterly reports. Different reports for the county and city. And I'm not sure how I factor this into my federal return at the end of the year. I'll make sure I get the lowdown.

It boggles my mind to think of how many times a single item is taxed. The materials to produce the item, the employees who make the item, the import or export of the item, the wholesale of the item, the purchase by a retailer, the sale to a customer, and in our case, the same item sold over and over is repeatedly taxed.

Our government takes in a huge huge amount of money. Which is great theoretically. A lot of necessary things can be accomplished with a big budget. But it's so insanely mismanaged. I have a mental image of one of those glass telephone booths filled with wind-blown cash, and all our politicians just grabbing what they can in the limited time they have in the booth. It's not about thoughtful long-term planning for the people; it's about who's the most aggressive.

This overly simplistic assessment of America's tax system has been brought to you by Firstimpressionist.

2 comments:

jonathan hickman said...

You're not really paying sales tax when you buy inventory, are you?

firstimpressionist said...

I was before I got this sales tax number.