#16
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The law about State sales taxes changed in 2018 due to a SCOTUS opinion. Here's a link to the case:
https://www.supremecourt.gov/opinion...7-494_j4el.pdf Basically, this is how things are: 1. A State can now require an out-of-state internet seller who sells retail goods to consumers in that State to collect the sales tax that an in-state brick and mortar retailer would charge that consumer for the same transaction. A certain level of "nexus" is required, e.g., $100,000 in sales per year or 200 transactions per year. 2. State must first pass a law which allows the State to tax such "remote seller" transactions and require the seller to register with that State, file returns, etc. 3. Some States have already done this. Others will likely follow. It is more complicated than this, but this is the essence. |
#17
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#18
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I think the situation is much worse for a small importer who is probably not paying themselves very well as they are trying to build the business. The big guys could choose to eat the tariff for a while to see if it works out in their favor.
Ask Ted if he could absorb a tariff based price increase. I've visited his store. He is in a great (expensive) location and still offers great service and prices (meaning he has not got a lot of margin to give away). Roughly 75% of sneakers (units) in the US are made in China, but the dollar volume is coming out of Vietnam. These tariffs combined with cheaper labor will do to the Chinese shoe industry what cheaper labor did to Maine. It will be interesting to watch what happens to the cell phone assembly business. The value add of assembly is roughly 5% of the retail price we see, but a tariff is on the entire manufactured cost of the phone (so far they are excluded). In this case partially finished goods are being shipped to China for assembly! Fear alone is likely going to move that biz elsewhere. The press makes great hay about how China has nearby sources of all sorts of minor piece parts (like screws) which must give them some kind of advantage. What they don't know is a factory must qualify any source of supply which takes 100+ times longer than FedEx to bring you samples from anywhere in the world.
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jf45ir Free DIY Acoustic Guitar IR Generator .wav file, 30 seconds, pickup left, mic right, open position strumming best...send to direct email below I'll send you 100/0, 75/25, 50/50 & 0/100 IR/Bypass IRs IR Demo, read the description too: https://youtu.be/SELEE4yugjE My duo's website and my email... [email protected] Jon Fields Last edited by Kerbie; 06-11-2019 at 02:01 PM. Reason: Quote deleted |
#19
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As they say, things you can count on are death and taxes.
I guess the new model is death, taxes, and tariffs. And the end result is that the consumer always ends up paying one way or another, as business still has to make a profit to stay in business. Don .
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#20
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Between any tariff-related price increases and new sales tax regulations, I think that used guitars are going to look increasingly attractive....
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#21
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This could also increase used prices also. You know supply and demand.
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#22
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#23
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Could also cause states to add taxes to used item sales (above a certain dollar amount) or try to regulate private sales channels. Once its decided that the only way to solve a problem is to add taxes, and they get used to having that extra money to spend, its nearly impossible to undo it all without coming up with some other sources of revenue -
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More than a few Santa Cruz’s, a few Sexauers, a Patterson, a Larrivee, a Cumpiano, and a Klepper!! Last edited by Basalt Beach; 06-09-2019 at 10:01 AM. Reason: remove political reference |
#24
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As pointed out in other replies, the application of sales tax on online sales will have FAR more impact than tariffs on Chinese goods. A $3000 guitar purchase last year will now cost (in this area) $3300. Not only do we think we're contributing $300 to the government, but in real dollars, it's closer to $400- because we've already paid taxes on the money we're paying sales tax with. It does however level the playing field somewhat with brick-and-mortar stores.
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Assuming is not knowing. Knowing is NOT the same as understanding. There is a difference between compassion and wisdom, however compassion cannot supplant wisdom, and wisdom can not occur without understanding. facts don't care about your feelings and FEELINGS ALONE MAKE FOR TERRIBLE, often irreversible DECISIONS Last edited by sdelsolray; 06-09-2019 at 12:42 PM. Reason: Removed political comment. |
#25
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Just to be clear, if Chinese made guitars cost more after tariffs I don't care in the least.
In fact, I hope they cost so much that an American guitar maker will rise up and start a business to capture those sales.
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#26
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"Saving money by not paying sales tax" is an often used strategy for purchasers.
It does matter somewhat on where you live, but a good friend of mine bought a very expensive camera from a large retailer in New York and received notice from the State Of Illinois (a full three years after the purchase) that he owed the tax PLUS a hefty penalty. Needless to say it was a lesson learned the hard (and expensive) way. |
#27
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Sadly, this will likely result in higher prices from American makers as well. "A rising tide lifts all boats."
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"It's only castles burning." - Neil Young Last edited by Kerbie; 06-11-2019 at 02:02 PM. Reason: Quote deleted |
#29
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This is a friendly reminder to remain on topic and stay away from politics. AGF rules indicate that political posts are not allowed. If you can discuss the rise in guitar prices from an economic and non-political perspective, feel free to do so. If you cannot, I recommend moving on.
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