Interesting. I just checked and my state charges within a range of 2.60% - 3.00% depending on the amount of money being processed. Non-tangible monies being transferred electronically are assessed fees according to the total dollar amount? A set fee for using the third party service makes more sense to me.

 

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Well is that just 2.3 percent of what you owe on January as the difference between your burden and quarterlies and withholding? Or is it 2.3 percent of your entire tax burden?

Let's assume it is your entire tax burden. How many tax entities are in CA? 30 million? if they processed all of their taxes that would be what? 50-60 bucks a return? Plus I think you are probably grouping non income tax in with your figure of one trillion dollars. Are you high right now?

 

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A set fee makes sense to me, too. I just think they are usurping the public. Capitalism is not working in this instance, because the banks are calling the shots. If you and I said, lets get into this business and just charge.001%, we would be barred from entering the market. The banks are in bed with the people making the laws.

Im bringing this thread up because a client just complained to me.

GC , it is just the amount you owe, the tax due on your return. However, the govt require payroll taxes be deposited into banks and other deposits must be made through banks, too. So, it is almost the all of the revenue.

we are not talking about billing. we are talking about a middleman taking money and taking juice for a lot of revenue. This is as simple as a few keystrokes per transaction.

 

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There is a huge economic loss on this....and on credit card charges in general.


It would be crazy to set up our other forms of currency like this....


People would be pissed if they wanted to buy a $1,000 TV with cash and had to come up with $1,030 as the US mint charges 3% to use dollar bills.


We left behind a barter system and invented currency to avoid these kinds of value destroying transactions.


There is almost no cost in moving money electronically from one party to another. We dont allow fees with cash or checks even though these are the most costly ways to move money around...but we do allow people to be gouged when moving money electronically.


Checks actually had this kind of charge associated with it when they first came onto the scene...but gov't regulations ended that to the benefit of everyone.

The red gets it and breaks it down.

 

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