21 November 2019

It's Called Obeying the Law, Everyone Else Does It

Once again, the "Disruptors" from Silicon Valley are whining about having to follow the law like ordinary people.

In this case, it's the food delivery services, who have decided that taxes are too hard to figure out.

Hire a f%$#ing accountant you f%$#ing f%$#s, and stop asking for a subsidy, which is what the real agenda is here.

And while your are at it, stop f%$#ing your employees who deliver the actual food:
Grubhub Inc. Chief Executive Matt Maloney says his food-delivery rivals need to charge more sales taxes on their delivery fees. They disagree.

Delivery fees administered by companies like Uber Technologies Inc.’s Uber Eats division, Postmates Inc., DoorDash Inc. and Grubhub are receiving increasing attention from local officials who have watched the industry grow quickly in the past several years. Food-delivery companies were projected to charge $10.4 billion in delivery fees in the U.S. by 2023, compared with $4.4 billion in 2017, according to analysts at Cowen & Co.

If such fees get taxed more uniformly, customers could shell out tens of millions of dollars more for the newly popular delivery services. Already customers can find themselves paying different amounts for the same order, depending on which service they use, and those delivery costs could rise further as the companies shift away from incentives and aim to improve profitability.

Meanwhile, some of the services could face tax liability for incorrect collections in the past.

………

An Uber spokeswoman said the company collects sales tax on delivery fees where required. A Postmates spokeswoman said the company is complying with all regulations and tax laws, and a DoorDash spokeswoman declined to comment.

Grubhub’s Mr. Maloney said he is confident that his company is collecting the appropriate sales taxes.

“The 34 states that have told us to tax our service and delivery fees need to audit everyone in our industry to make sure we’re following their tax laws,” he said in an interview. “I’m happy to be audited with the rest of them.”

………

A Wall Street Journal analysis of dozens of test food orders across the four states and Washington, D.C., showed that Grubhub’s three major rivals typically collect sales tax on the food subtotal, whereas Grubhub charges tax on food plus fees. In some cases, the same restaurants sold the same food at the same price on all four websites, but the totals varied widely based on the added fees. Only Grubhub collected sales tax on delivery and service fees in all of the instances.
This is an opening salvo in attempt to to make lobby lawmakers for a tax carve out.

Screw that.

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