If coin dealers in Ohio go out of business because of sales tax, is that tragic, or just a business
Longacre
Posts: 16,717 ✭✭✭
I was taking a read through the latest issue of Coin World, and read the guest article by Brad Karoleff. Normally, I like his articles, particularly when he sticks to numismatics. In his editorial, he goes over the top (even by Longacre's standards 
), and states that "Ohio dealers (and consumers) have been sentenced to economic incarceration without having committed any crime (because of the imposition of a 6% sales tax in Ohio on bullion)."
No one likes paying taxes, not even Longacre. My job (and quite possibly the purpose of my existance) centers around paying the legal minimum in taxes, and not a penny more. In fact, it is a corporation's (and everyone's) patriotic duty to pay taxes, but it is entirely permissable to structure transaction in such a way to legally minimize the amounts due (the US Supreme Court even said so).
Karoleff indicates that hundreds of coin dealers have gone out of business in Ohio because of these sales taxes. Because these taxes are a fact of life and a cost of doing business, should we consider the situation of the Ohio coin dealers to be a tragedy, or just a business reality? Should we weep over this, or should it be a situation where the best business people survive and adapt, and the others who cannot adapt should have not been in business in the first place? What do you think?
), and states that "Ohio dealers (and consumers) have been sentenced to economic incarceration without having committed any crime (because of the imposition of a 6% sales tax in Ohio on bullion)."No one likes paying taxes, not even Longacre. My job (and quite possibly the purpose of my existance) centers around paying the legal minimum in taxes, and not a penny more. In fact, it is a corporation's (and everyone's) patriotic duty to pay taxes, but it is entirely permissable to structure transaction in such a way to legally minimize the amounts due (the US Supreme Court even said so).
Karoleff indicates that hundreds of coin dealers have gone out of business in Ohio because of these sales taxes. Because these taxes are a fact of life and a cost of doing business, should we consider the situation of the Ohio coin dealers to be a tragedy, or just a business reality? Should we weep over this, or should it be a situation where the best business people survive and adapt, and the others who cannot adapt should have not been in business in the first place? What do you think?
Always took candy from strangers
Didn't wanna get me no trade
Never want to be like papa
Working for the boss every night and day
--"Happy", by the Rolling Stones (1972)
Didn't wanna get me no trade
Never want to be like papa
Working for the boss every night and day
--"Happy", by the Rolling Stones (1972)
0
Comments
Check out the Southern Gold Society
I'm in Nevada, hmmmmmmmmmmmmmmmm
He's still in business last I looked and doing quite fine. If everyone in OH is required to collect the sales
tax, how are the dealers that went out of business at a disadvantage? Should be a part and parcel of
doing business and I'd say there was some other reason that cause the demise of those businesses.
bob
New collectors, please educate yourself before spending money on coins; there are people who believe that using numismatic knowledge to rip the naïve is what this hobby is all about.
my belief is that the guys who have fallen on hard times and failed did so more because they were just poor businessmen.
But don't hire me cuz I'd axe a lot of dead weight taking up space in my government.
``https://ebay.us/m/KxolR5
<< <i>i live in Ohio and regularly attend the same shows in the same locations that i've gone to for years prior to the sales tax being imposed. i haven't noticed the "hundreds of dealers" that have gone out of business. the guys that are at shows now are the same ones as in years past, and as a matter of fact there have been a few newcomers in the past year or so. that's not to say some guys have gone out of business, only that in Northeastern Ohio it would seem that he's overstated things.
my belief is that the guys who have fallen on hard times and failed did so more because they were just poor businessmen. >>
This has been mostly the same around central Ohio. Although many have been saying lately that they have to have larger splits between buy/sell to make up for the tax.
Most here are just pissed that the Noe scandle is being used (at least from the viewpoint of the dealers i've talked to) as a way to justify the tax. The sale of this INVESTMENT was sold in auctions that many local dealers had no access to and was still able to recoup most of the money.
I see this thread going political very quickly.
<< <i>If states want to lose business (and ultimately other forms of tax revenue on income from jobs and business taxes) through insisting on a sales tax, it's their right to be so short-sighted. >>
This has already happened here in Illinois thanks to our governor, who I and others here in Illinois have called for his impeachment.
Presently, Illinois does not have a sales tax on coins & currency.
Governments spend more and then they have to raise taxes!!
"“Those who sacrifice liberty for security/safety deserve neither.“(Benjamin Franklin)
"I only golf on days that end in 'Y'" (DE59)
Second, it's Ohio's right to tax whatever, and it's the business owners' right to take his business elsewhere. Perhaps this is one of the reasons Ohio has a significant number of the most economically depressed cities in the US.
On US Eagle bullion coin sales, the pieces should be taxed on the cost less the face value, not the full cost. But many often tax on the full cost. That type of action adds over $4 to the price of a one ounce gold eagle.
<< <i>I've found dealers overtaxing.
On US Eagle bullion coin sales, the pieces should be taxed on the cost less the face value, not the full cost. But many often tax on the full cost. That type of action adds over $4 to the price of a one ounce gold eagle. >>
... ah, but what's a buck when the buck never stops here ?
signed,
an American citizen.
``https://ebay.us/m/KxolR5
<< <i>First, it's hard to believe there ever were "hundreds of dealers" in Ohio, let alone hundreds who have gone out of business.
Second, it's Ohio's right to tax whatever, and it's the business owners' right to take his business elsewhere. Perhaps this is one of the reasons Ohio has a significant number of the most economically depressed cities in the US. >>
Illinois is getting to be that way, too.
Nobody loves coin more than the ex Mrs TwoSides2aCoin
``https://ebay.us/m/KxolR5
<< <i>Maybe the dealers should all arrange to go broke on a weekend and ask for a federal bailout?
... is Hollywood getting this ?
Maybe it's heading to the east coast for SNL. Someone ought to be using this
``https://ebay.us/m/KxolR5
Jim
still have coin dealers
Dealers do not pay tax, the customer does
Dealers just hold the tax until it is sent in to the state
Menomonee Falls Wisconsin USA
http://www.pcgs.com/SetRegistr...dset.aspx?s=68269&ac=1">Musky 1861 Mint Set
<< <i>North Carloina is just as bad. I cant sell gold and silver bullion over the counter in any quantity do to the sales tax laws. There is currently no exemptions like over 1k, not taxed etc. Its cheaper for a customer of mine to order it from out of state with shipping than to buy it from me with sales tax added. And becuase the profit margin is so tight % wise, I cant eat the tax. I end up shipping all 1 oz gold and larger quantities of silver out of state or to other dealers becuase of this.
Jim >>
I wonder what business would be like there if stock brokers and real estate title co's had to collect the state's sales tax on the investments they handle?
If there was, I'd buy from out of state.
Ray