Did you know? (sales, purchasing, private schools)

[JustCallMeTC]

That despite the financial struggles public schools throughout the state are facing, they still are required to pay sales tax on almost everything?

And yet the Federal Government, when purchasing anything in WA State for use in WA is not?

Total insanity.

Why are out tax dollars getting "taxed again"?

[509]

Originally Posted by JustCallMeTC

That despite the financial struggles public schools throughout the state are facing, they still are required to pay sales tax on almost everything?

And yet the Federal Government, when purchasing anything in WA State for use in WA is not?

Total insanity.

Why are out tax dollars getting "taxed again"?

For that answer ask the Governor.

However, I do know the answer as to why the Federal Government does not pay sales taxes.

As a poor immigrant it was on my citizenship test. The power to tax is the power to destroy. So the Federal Government in the constitution took away the power from the States to tax the Federal Government. They did not want to take a chance on the States destroying the Federal Government through taxation.

More native born Americans need to read the Constitution. It is an interesting document!!

[JustCallMeTC]

Originally Posted by 509

For that answer ask the Governor.

However, I do know the answer as to why the Federal Government does not pay sales taxes.

As a poor immigrant it was on my citizenship test. The power to tax is the power to destroy. So the Federal Government in the constitution took away the power from the States to tax the Federal Government. They did not want to take a chance on the States destroying the Federal Government through taxation.

More native born Americans need to read the Constitution. It is an interesting document!!

The tax law to which I refer has been in place long before Gregoire was elected. To the best of my knowledge, WA is one of only a handful of states that do this.

[Ira500]

WA is one of only seven states without a state income tax, so they have to make up the revenue somehow.
On the surface, charging sales tax to public schools is insane. Where did the schools get their money in the first place? Taxes.
Don't even get me started here. Education should be fully funded, and it shouldn't come down to asking the voters every few years for an operations and maintenance levy. Isn't this why we elect people, so they can make those decisions? And aren't people generally going to vote in their own self interests? What if you're a senior and don't have kids in public schools? What if you're young and don't have kids?
Folks are always complaining about how the services government provides are being cut, yet they don't want to pay for those services.
And the sales taxes that schools pay, where is that money going? Not back to the schools, schools get their money from property taxes. We have used sales taxes to build professional sports arenas, stadia owned by people worth billions....So, in essence we're taking from the poor( schools), and giving to the rich ( billionaire sports franchise owners). No resemblance to Paul Allen inferred or intended.

[JustCallMeTC]

This is precisely my point. Taxing "tax money" earmarked for education is insane. I just don't get it.
I sell to schools. And I only became aware of this when I had to charge them sales tax. I just could not comprehend how stupid that is. It's just blows me away. The taxes one District paid on a new school project of mine could have easily funded the salaries of dozens of teachers.

Surely there are better ways to get revenue.

[Ira500]

Great thread, BTW...I just did a little research, and found that only six states charge sales tax from their schools. A few more charge sales tax from private schools only. It was article from a North Carolina newspaper ( NC is also one of the six), suggesting that if they were able to not spend that sales tax money, they'd be able to build more schools.
In some states, sales tax money goes to the schools. In WA, sales tax money is taken from the schools.
But the voters here have rejected a state income tax on a few occasions, and it's considered the "third rail" in politics, political suicide if it's proposed. Are the voters stupid or simply selfish?

[JustCallMeTC]

Originally Posted by Ira500

Great thread, BTW...I just did a little research, and found that only six states charge sales tax from their schools. A few more charge sales tax from private schools only. It was article from a North Carolina newspaper ( NC is also one of the six), suggesting that if they were able to not spend that sales tax money, they'd be able to build more schools.
In some states, sales tax money goes to the schools. In WA, sales tax money is taken from the schools.
But the voters here have rejected a state income tax on a few occasions, and it's considered the "third rail" in politics, political suicide if it's proposed. Are the voters stupid or simply selfish?

Ira,

I honestly don't think the average voter knows that schools pay sales tax. Before I started selling to schools I certainly didn't. I would think that if more people were aware of this, that they would fight to change it. Schools are fighting for very dollar these days.

Interestingly tax exemptions for certain federal taxes are also rather bizarre. For example, Churches are exempt from federal excise tax on their phone bills. As are interstate carriers and radio and TV stations.

Perhaps there was a rhyme or reason for that at one time, but it certainly makes no sense to me either.