In the unkindest cut of all, New York state is now imposing a tax on cuts. A recent audit by the state Department of Taxation and Finance (DTF) slammed 33 Bruegger's Bagels franchises for failing to charge sales tax on sliced bagels. Unsliced bagels are exempt.
The audit also found that Bruegger’s failed to charge tax on meals consumed on the premises.
The state slapped the owner with a hefty bill for back taxes and demanded that he begin collecting. That is not a tax cut, it is a tax on cuts. Maybe Bruegger's should pass out knives for patrons to cut their own taxes by cutting their own bagels.