Corus Bank Informative - Taxes; Good, Bad, Ugly - CDs
CINCINNATI, OH, ILLINOIS -- This is primarily about Tax Evasion vs. Tax Avoidance. A "bonus" "'mini' wealth builder" is tacked on.
At one time I thought that any purchase made online was legally and automatically exempt from state and local sales tax. “Wrong!” It seems that every body, except me, knew this.
I learned that a state can require a vendor to extract the sales tax for the state if – the vendor – a company, manufacturer, corporation, etc. has a “presence” (operation) in that state (and, I assume, is subject to that state's taxes).
I have paid state and local sales taxes on web purchases and, occasionally, I didn’t have to.
So, I suppose, that the moral of this tale is: “tax avoidance” should be a part of the purchasing plan to get the biggest “bang” for your buck.
Tax Evasion/ illegal; Tax Avoidance/legal/smart!
Consider: an online purchase of $3,000.00 subject to Ohio and Hamilton County sales tax @ 7% is the tidy sum of $210.00. I “grin & bear” the sting of Ohio income and other taxes. But, if I can avoid it I don’t make “charitable” sales tax donations to a “tax greedy” state.
Incidentally, I once thought that it was an insult; and illegal, for an FDIC insured financial institution to pay less than 5.25% on Passbook Savings, Certificates of Deposit; etc. I had been accustomed to 8% to 14% on CDs. Now 4% looks like a bank heist (“I’m conservative in all things financial; especially in terms of tolerance for investment risks).
There may be a better deal “out there” but the CORUS Bank, Chicago, IL, (firstname.lastname@example.org) is offering a “promotional” 12 Months CD with an APY @ 4%; minimum deposit $10,000.00. Not bad; all things considered; and they are not on the Better Business Bureau “bad actor hit list.” After dialing the Bank’s (800) 555-5710 number and going through the standard “push button number, for…” menu - a Bank Customer Service Rep. actually answers; promptly.