We here in New Hampshire don't have a sales tax, so it really doesn't bother me. It sucks when I make a trip over to Maine or Mass though, cause I forget until I reach the counter.
My American Brethren! Can you explain this to me?
- Thread starter XJ-0461
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because VAT taxes are needlessly complex and, by their design, hide the true cost of the tax paid on the good.
No we have it here to just not on essential things for living ie food and clothing. Deleware has no sales tax on anything though.nunqual said:
I have a very simple example for you:summerof2010 said:
A product costs $9.95. I want 2 of them. For convenience let's say tax is 10%.
If taxed at the total price you get 10%*(9.95+9.95) = 10%*19.90 = $1.99 tax.
If taxed on each item you get 10%*9.95 = 0.995, which is rounded to $1.00 (so $2 total)
So one way you get one penny more than the other. You will only get at most 1 penny difference for each item after the first (although that becomes increasngly unlikely as you add more items).
Not much on an individual basis but when you consider how many transactions are made per day in even one county that can add up.
There is a reason behind it (so the government can get a few cents from everything you buy, which isn't much from one person, but is a lot from four hundred million people), and it's not that much, so I wouldn't worry. If the item says something like "2.95", guess it at about three bucks. Yes, it is kinda stupid, but it's just part of our culture. No reason to be afraid, just go with it and pay a few extra cents.
Note: It is a percentage, so if you're coming to America to buy something like an antique fur coat, it will be far more than sticker price. Then again, if you can afford anything where it's not just "okay *grumble grumble*", you shouldn't give two shits if it's a little more overpriced.
Note: It is a percentage, so if you're coming to America to buy something like an antique fur coat, it will be far more than sticker price. Then again, if you can afford anything where it's not just "okay *grumble grumble*", you shouldn't give two shits if it's a little more overpriced.
So long as there is no legal precedent to state VAT or Tax amt. on the tag prior to purchase, no vendor or retailer is willing to dissuade purchases. It'd be the same as stating cost on the sales tag, letting the consumer see how much margin they're being charged. Some information is kept under wraps to help us spend more.
Just like when a doodad sits on the shelf for $5.00 or $4.99 and is overlooked day in/day out. But come sales day (like Black Friday) and it sits on a promo display that reads "2 for $10.00!" it'll sell out before lunch... Crazy, huh?
Btw, in Washington state, the tax is right around 9.4%. I just add 10% to everything I plan to buy - and consider a 10% discount as just having saved me tax.
Just like when a doodad sits on the shelf for $5.00 or $4.99 and is overlooked day in/day out. But come sales day (like Black Friday) and it sits on a promo display that reads "2 for $10.00!" it'll sell out before lunch... Crazy, huh?
Btw, in Washington state, the tax is right around 9.4%. I just add 10% to everything I plan to buy - and consider a 10% discount as just having saved me tax.
Sales Taxes are all by state, so they vary. One very important thing to do is to look up whether or not the state will give it back to you when you leave.
I should explain that: When you buy something online that crosses state lines, there is no sales tax involved (there's shipping, but that's a different beast altogether). You get a similar effect when you visit a state. You will have to pay the sales tax of the state, sometimes with more local level taxes thrown in, but you can save your receipts from the trip, and upon the conclusion of your visit, you can actually get back the sales tax from the state. You'd have to look up how to do it on the individual state's website (usually STATENAME.gov), and I'm not sure if all states do it, but it's very useful, especially if you plan on buying a lot of stuff.
Anyway, calculating it can get weird. A common misconception is that it is merely 7% or 8% of your purchase, but in actuality, you calculate the 7% after rounding your total price up to the nearest dollar. ($1.99 would have a sales tax of 14 cents, but so would $1.09).
Not much else to know. It's not hard, just different than what you may be used to.
I should explain that: When you buy something online that crosses state lines, there is no sales tax involved (there's shipping, but that's a different beast altogether). You get a similar effect when you visit a state. You will have to pay the sales tax of the state, sometimes with more local level taxes thrown in, but you can save your receipts from the trip, and upon the conclusion of your visit, you can actually get back the sales tax from the state. You'd have to look up how to do it on the individual state's website (usually STATENAME.gov), and I'm not sure if all states do it, but it's very useful, especially if you plan on buying a lot of stuff.
Anyway, calculating it can get weird. A common misconception is that it is merely 7% or 8% of your purchase, but in actuality, you calculate the 7% after rounding your total price up to the nearest dollar. ($1.99 would have a sales tax of 14 cents, but so would $1.09).
Not much else to know. It's not hard, just different than what you may be used to.
Its taxes that allow the government to make money on everything, however each state has their own tax laws these extenuate to what kinds of items can be taxed what, what category those items fall under, and how much that category's tax rate is. So this way food can be a different tax than a shirt. It truly varies by state.
I ask myself this question every so often. I would like to say it's because some lass/laddie in AnyGivenRetail said "Okay we need to sell this item at this price to make a profit. Print out every price tag to read this price". Then some lad comes in and says "Boss! We printed them out, but what are we going to do about the different sales tax in each state?" The boss thinks about it long and hard and finally says, "Keep the price tags, we'll add the state tax at the register."
The End
As I said this is what I would like to think. I would also like to thi- OOH! SHINY!
(Runs off)
P.S. Hope you have a good time when you come to LA!
The End
As I said this is what I would like to think. I would also like to thi- OOH! SHINY!
(Runs off)
P.S. Hope you have a good time when you come to LA!
Demons? Ho ho, demons indeed. Let us not put it past the ol' guv to not think about spawning demons from the mists of treacherous realms. I mean, we all know that it happens on mars sometime in the future, right DOOM?Hyper-space said:
Consumables and necessities are not taxed, EG, food, water, clothing. Soda/Pop is taxed though. Durable goods, such as TVs and other appliances, furniture, and pretty much everything else is taxed (Ohio).XJ-0461 said:
Sales tax is for the state government. The states get fucked over by the Federal government financially, so they had to come up with other means of income. That's a whole other debate though.
I'm not sure how Calis system is. I'm guessing pretty messed up.
So the government can take your money for doing absolutely nothing. It is the same with the lottery. In New York, between state and federal taxes you only get to keep about 66% of your winnings. And then you are taxed again later on because you have to claim it as income.
