"Ed Huntress" wrote in message
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"PrecisionmachinisT" wrote in message
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"Ed Huntress" wrote in message
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wrote in message
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Boeing
for example flies its commercial planes to Idaho and sell them there
to avoid Washington State sales tax.

Good for them. That's not federal income tax, which was what you
identified in your figure.


Patently false, and on several levels....

First off, sellers in Washington State don't "pay" sales tax--rather,
they are required under statute to collect it from the buyer and hold in
escrow on behalf of the state, generally forwarding the it to the State
on a quarterly basis.

Second, sales tax is only due on sales made by residents of and by
businesses who operate within Washington State. For instance, in-state
sales to residents of Oregon, Idaho or any other state for that matter,
are exempt.

Third, and more importantly, it does not matter where the "sale" took
place--even if the sale takes place in Egypt, a Wa. seller is required
to collect sales tax from a buyer if the buyer is a Wa. resident or if
the buyer is a business that has a physical presence in the State.

Lastly, commercial aircraft are exempt from the State Sales Tax.

SEE:

http://apps.leg.wa.gov/rcw/default.aspx?cite=82.08

http://apps.leg.wa.gov/rcw/default.aspx?cite=82.08.0262

http://apps.leg.wa.gov/rcw/default.aspx?cite=82.08.060

Are you suggesting that Dan is winging it a bit? d8-)


Well, since commercial aircraft are specifically listed the applicable
statue as being exempt...

But since I have you on the wire here, it's important to realize that
military contractors "charge" income taxes... think we can agree that the
result is a zero net gain to the contractor because the money goes back to
the government, when the contractor pays his taxes...

However, following the money trail, this money...which is originally sourced
from the defense budget, Boeing simply "collects it".....then later, Boeing
remits it to the IRS wherein it ends up going into the general funds--in
essence, "re-distributed", if you will....

IOW these dollars tax dollars end up back in the hands of government and are
subsequently used to help fund the entire gamut of federal programs.

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