Quote:
Originally Posted by Smartcar
This is an example of how the media shades the truth. If you're on TIPPS which most people these days are, you pay monthly based on last year's taxes, and when the tax bill for this year is issued, your payments are adjusted accordingly. So if you paid 1500/mo for 6 months and your tax bill is $38,000 then you have to make up the difference in the remaining 6 months. It's not a 4.27x increase in taxes, it's a 4.27x increase in payments.
Likely last year's taxes were $18,000 so a big jump, but last year there would still have been a business tax bill which was fully eliminated this year. So a big increase but not as big as it looks.
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Yeah but really, regardless of whether they’re paying by TIPP or in a lump sum, it’s an enormous cost increase for a business to bear. Restaurants seem like they’ve been hit with one thing after another these last couple years. Wage increases, increased property taxes and at the same time people cutting back with the recession. Just a grim series of events.
(I think your math is a little off and the increase means they’re paying ~$38k in the last six months after $1500/month for the first six months?)