[Dixielandjazz] Tax Accounting was How Stupid Can We Be?
barbonestreet at earthlink.net
Mon Dec 13 16:37:20 PST 2004
"Judy Eames" <jude at judyeames.co.uk>
> Personally I was very happy to pay a cut at Sacramento last yaer..... we
> sold quite a few CDs and if we all benefited that was fine by me. I fact I
> was under the impression that all or most of the money went to pay taxes.
I believe Sales Tax in Sacramento is about 8%. So if a CD sells for $15, the
tax is $1.20. The festival charged $4.00. Who got the $2.80?
Put another way if 10,000 CDs were sold at the Festival that's $!50,000. Tax
was $12,000. The festival charged $40,000. Who got the $28,000?
> I've never been asked for a cut at UK venues although I believe there used
> to be a promoter who did it. As for promoters being greedy I just had an
> email from the director of Teignmouth Festival UK, saying that it had been a
> success as they'd JUST covered costs. Seems to be there aren't too many big
> profits made these days
There may be a "nice guy/gal" or two out there. However breaking even
depends upon how one accounts for "costs". Hollywood Movies don't make much
net profit either. Which is why actors/producers/directors et al. all take a
percentage of the gross rather than a percentage of the net profits. The
bean counters do not want huge net profits because they wish to avoid taxes.
Not, of course, that I am cynical or anything. :-) VBG
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