The Fine Print Of Tax Law

When it comes to taxes, folks, there’s always a catch. The bureaucrats will find a way to separate you from your money:

At first, Ohio’s new tax law appealed to Michael Kovach. Under the plan, which was enacted in 2005 and is being phased in gradually, Kovach, president of City Machine Technologies in Youngstown, Ohio, would no longer have to pay tax on machinery and equipment. The state scrapped its outmoded tangible personal property tax and several others and replaced them with a new tax on gross receipts. …

But as is often the case with tax law, the fine print revealed a different story. If Ohio’s gross receipts tax, known as the Commercial Activity Tax, doesn’t raise enough revenue within a certain time period, the tax commissioner can increase the rates without warning. The likelihood of just such a tax hike seems to have grown, because Ohio faces a budget deficit that some estimate could reach $1.9 billion in the coming fiscal year.

And more of that fine print is coming to a tax law near you: “Already, 28 states appear to be headed for budget trouble, with deficits totaling $35 billion.”

Advertisements

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: