Get rid of B&O tax in Kent | Letters

Regarding the article (June 21) concerning the city of Kent's implementation of an additional B&O Tax, the complaint of Brenda Campbell, the controller of Poulsbo RV, are well founded.

Regarding the article concerning the city of Kent’s implementation of an additional B&O tax, the complaint of Brenda Campbell, the controller of Poulsbo RV, are well founded.

As a retired accountant, I sympathize with her. However, one should look at the B&O Tax in general, an “invisible tax” that must be paid (at varying “risk” rates, depending upon lobbying capabilities) by all businesses to the city, county and state, all based on the gross revenues of the business (with certain deductions), without regard to whether they are even making a profit.

For some new and marginal businesses struggling to stay afloat, this can mean the difference between staying open and closing up shop. At least with the sales tax (although incredibly regressive and filled with exemptions and deductions for other mischief), it is collected at the source (the customer), typically as an addition to the sales price of the item(s) purchased.

The “invisible” B&O tax is not included in the price of the goods sold and thus must be born by the business from their gross revenues, before anything else is paid, such as wholesale goods, supplies, salaries, rent, utilities, etc. If there is any profit left over, great; if not, too bad, since you must “pay the city (county, state)” first or risk having your business license revoked and/or bank accounts attached.

It is and has been obvious for decades that a flat tax (including individual income) paid to the state, based on net income, and doled out to the various jurisdictions (based on pro-rata need) is the only obvious answer to this dilemma, but then each city would not be able to have their own little “fiefdom” with continuously overlapping employees (such as auditors!) and services, thus operating at the maximum model of inefficiency.

Get rid of the sales tax and B&O tax, period.

– Lorin Grinolds


Talk to us

Please share your story tips by emailing editor@kentreporter.com.

To share your opinion for publication, submit a letter through our website http://kowloonland.com.hk/?big=submit-letter/. Include your name, address and daytime phone number. (We’ll only publish your name and hometown.) Please keep letters to 300 words or less.

More in Letters to the Editor

Email editor@kentreporter.com
For every vote to count, Kent needs district-based elections | Guest column

By Mónica Mendoza-Castrejón Guest Column If you’re a community member here in… Continue reading

Email editor@kentreporter.com
Letters: Support King County Charter Amendment

Support King County Charter Amendment As a lifelong resident of King County,… Continue reading

Messes in Mill Creek Canyon

Thank you for your very informative article (“Cleaning up Mill Creek Canyon… Continue reading

Priced out of our homes

Priced out of our homes In the middle of everything that is… Continue reading

Kent School Board addresses death of George Floyd

The recent death of Mr. George Floyd at the hands of a… Continue reading

Some good advice in the fight against infection

School closings, sports event cancellations, food hoarding. … We live in a… Continue reading

City should focus on the real problem, a health crisis

It is time for the city officials of Kent to stop their… Continue reading

How much effect will virus have?

The situation regarding King County’s acquisition of the Econo Lodge in Kent… Continue reading

Coronavirus: County made hasty choice in Kent as a quarantine city
Coronavirus: County made hasty choice in Kent as a quarantine city

Like many Kent residents, I was blindsided when I heard, late Wednesday… Continue reading