Monday, May 14, 2007

Indiana elected officials raise even more taxes

Several taxes were increased in Indiana this year. These taxes were raised by a partnership between Democrats and Republicans; otherwise knows as Republicrats or Demopublicans.

One of the more interesting tax increases involves sales tax.

Many businesses collect sales taxes for Indiana. When they remit these sales taxes (6%) to Indiana they are allowed to keep .0083% of the amount collected if they remit the sales taxes to Indiana in a timely manner. This small fee is meant to compensate the business owner for the expense and hassle of collecting the sales tax for Indiana. This .0083% collection allowance is a joke.

We have several clients that we help remit their sales taxes to Indiana. Many small businesses end up paying an accounting firm (like us) to provide this service for them. Believe me, the small collection allowance they are allowed to keep does not come close to covering the fees they pay their accountant to help them file their Sales tax forms.

During this last session the "collection allowance" was lowered for larger companies. If your business has 10 -100 million in sales your collection allownace dropped to .006%. If your business has over 100 million in sales then your collection allowance dropped to .003%.

By lowering the collection allowance for large firms Indiana has increased is revenues by a little over 15 million dollars per year.

So businesses that have more then 10 million dollars in annual sales are being taxed a little over 15.3 million dollars more per year when this law takes effect.

Please stop telling me that either Party stands for lower taxes or smaller Government; they do not.

Mike Sylvester

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