Demand an end to FORCING Small Businesses to pay for collecting sales taxes in behalf of the states

  • by: Mario Piedra
  • recipient: The state Governors of the United States of America should NOT force the small businesses to subsidize the government's cost for collecting sales taxes.

The Setting:  The states require by law that all businesses selling products or services to collect sales taxes from their customers and in turn, every months send all taxes collected to the state.  In retail, over 80% of all purchases are paid with credit card, in turn, the credit card issuers do not allow you to prevent the customers from paying or their purchases fwith credit cards.  Ech state have their own sales taxes rates from 0% to 10%.

The Problem:  80% or more of all taxes are collected via credit card purchases that cost between 2.5% to 4.5%;  this cost is paid by the small businesses and goes into the pockets of the biggest banks in America.  The Banks DO NOT substract the sales taxes portion before calculating their fees, infact non of them provides software capabilities to report sales taxes separatly to the bank (this action will cost them billions of uncollected fees).

Cost to Small Businesses which equates to Rebenues to Banks and SAVINGS TO STATE GOOVERNMENTS in 2013:  Retail sales were $4,530 Biillion, if we approximate credit card sales to be 80% of this sales, then $3,624 Billion were paid by credit card and processed by BIG BANKS; if we for expediancy sake assume that the average state charges 8% sales taxes, than the taxes collected and processed by the BANKS will be $268.45 Billion dollars.  If we use an average cost of 2.75% as the credit card fee charges by banks, then ($268.45 Billion X 2.75%) the fee for collecting sales taxes in behalf of the states governments and paid by the small businesses (an expense) is approximately $7,380 Million dollars PER YEAR.

The small business does not benefit from this collection yet it has to pay to collect it for the Government.  Essentially the government forces the small guys (small business community) to give their hard earned money (in bank fees) and give it to the big guy (the banks).  The Banks forces you to take credit cards if that is what the customer wants to use.  The Banks and the Goberment are colluding to exploit the small business comunity.

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