Re: Tax on cc card rebates? - YES, IRS should tax

"BMS" <[EMAIL PROTECTED]> wrote:

> ...
> The flaw in your argument has been that the merchant is not
> a party to the transaction.
>
> The cc copany's pitch is we'll provide a bonus incentive so
> that a consumer that may not want to buy is encouraged to
> spend maybe even more with the rebate.

Another flaw is that orig poster is using "cc company"
loosely.  The card issuer (bank) - who issues the rebate -
does not set the merchant fee, nor directly receive any part
of it.  VISA, MC, etc. are merely member-owned organizations
who provide the network and set the rules. Two or three
further unrelated entities intervene between merchant and
purchaser.  Where unrelated entities are involved, it's not
just substance, but form also.

<< ------------------------------------------------->>
<< The Charter and the Guidelines for submitting    >>
<< messages to this newsgroup are at www.asktax.org >>
<< ------------------------------------------------->>