No More Free Lunches

Toss a Quarter to Someone Who Cares

from JoeUser Forums
I was watching the news last night and I couldn't help but be disgusted with the State of Maine. I know they are one of the highest (if not the highest) taxed states in the country. It's not unusual for taxpayers to be getting a refund from the Federal only to pay big to the State. It's usually a sure thing. Many businesses have pulled out for just that reason. It's hard to be a business owner with the State looking over your shoulder squeezing every penny they can out of you.

Here's the latest.

A businessman who owns a chain of Subways (12 I think) had always, as incentive, given his workers one free lunch a day. It helped the morale and was a win-win for everybody. After doing this for some years, the state just got wind of this . They now are demanding he pay taxes on these freebies over the last three years. So with interest and penalites he owes the State of Maine about $3000 in back taxes. This is just for giving his workers a bite to eat. How absurd.

He is furious. Here he's trying to do good and getting taxed by giving away food. He was interviewed and said he couldn't understand the reasoning behind it. Everyday the shops throw away bread and vegetables. It just gets tossed and he doesn't get taxed on that. So what if he gives his employees a free lunch?

So he's now forced into activismt and is headed to the state to get this law off the books. It's one thing to give away a free car but a sandwich? Besides, shouldn't it be the receiver that has to pay the tax? Why should he?

So the new deal the State has made with him is to charge his employees a quarter for the meal and the state will get two cents of every quarter charged. I wonder what happens in other states regarding this issue?

I guess there really is NO such thing as a free lunch anymore!!
politics
3,889 views 8 replies
Reply #1 from JoeUser Forums Top
That would piss me off as well! Several years ago, the state of Virginia mailed out "voluntary" sales tax forms. You are supposed to remit sales tax on items bought over the internet.

Yea, I filled out my form.

NOT
Reply #2 from JoeUser Forums Top

Nothing like the government taking control away from the citizens to handle our own issues.

So, the typical fast food worker gets a free lunch to subsidize the low wage they are paid.  That way, the employee might be able to make ends meet, or may be just a bit better off by getting a decent meal (Subway can actually be healthier than what a lot of people eat). 

Damn that businessman!  The State needs taxes!

It's such a shame that things like this happen...a total shame.

 

 

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Reply #3 from JoeUser Forums Top

I don't understand this..

The sales tax on nothing is...NOTHING.  He didn't charge them, he fed them. 

Weird.

Reply #4 from JoeUser Forums Top

Weird.

Government.

Reply #5 from JoeUser Forums Top

I don't understand this..


The sales tax on nothing is...NOTHING.  He didn't charge them, he fed them. 


Weird.



Technically, he purchased the sandwich for them. There is of course no physical transaction, but the product was paid for by the owner, as he ate the costs. Instead of charging his employees, he "charged" himself, and legally is liable for the sales tax just like any other sales transaction.
Reply #6 from JoeUser Forums Top
In CPA language it's called a used tax. If he gave the food away to charity it would be called a donation but because this was to employees it's called a perk so a perk in this case is taxable. Go figure.

I go along with Dr. Guy......it's just government.
Reply #7 from JoeUser Forums Top
Technically, he purchased the sandwich for them. There is of course no physical transaction, but the product was paid for by the owner, as he ate the costs. Instead of charging his employees, he "charged" himself, and legally is liable for the sales tax just like any other sales transaction.


It's still BS.

I remember years ago that one of the perks of working for a restaurant was free meals. Such is not the case anymore. I'd bet you that stupid laws like this are part of the reason why.
Reply #8 from JoeUser Forums Top
Unbelievable!!  Simpy appalling!  It's no wonder I hate politics and government!