Sales tax in the US

Locut0s

Lifer
Nov 28, 2001
22,205
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Ok this is going to sound stupid but bear with me.

I haven't been down to the US is quite some time so I can't remember if your sales tax system is exactly the same as ours. I work in retail here in Canada (7-11 Assistant Manager) and every time I get a tourist from overseas they are confused by out tax system. When I mean overseas though I mean England where they have the VAT and other countries that have a similar sales tax system.

Here sales tax is added on after the sticker price. In other words if you go into a store and see a $2 chocolate bar you won't be paying 2 bucks at the register. Instead you will be paying 2*(the sales tax). So if you have 10 or 14% sales tax you would be paying 2.20 or 2.28. Isn't this the same in the US (of course your sales tax tends to be lower but isn't the system the same?)

Edit: Some info on Canada's Tax system (Wiki)

Actually looking at that the the combined total tax burden on Canadians is not THAT much higher than for the US on average, see chart at bottom. Interesting.
 

SonnyDaze

Diamond Member
Jul 31, 2004
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everman

Lifer
Nov 5, 2002
11,288
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Same thing, but your taxes are a lot higher. However some states don't have a sales tax.
 

Locut0s

Lifer
Nov 28, 2001
22,205
43
91
Originally posted by: everman
Same thing, but your taxes are a lot higher. However some states don't have a sales tax.


Thought so. I also thought some states didn't have sales tax. In Canada we have 2 different sales taxes Federal and Provincial. The Federal sales tax GST is currently 6% and applies to most goods and services. Most Provinces also have a provincial sales tax usually 5-7% which usually applies to a more limited range of goods and services, though still a lot. Some foods and other special items are exempted from both. When you add both together you are looking at paying between 12-14% sales tax in most places.
 

Locut0s

Lifer
Nov 28, 2001
22,205
43
91
Originally posted by: intogamer
Thats how it works here...? :confused:

Maybe because your taxes are soo high :cool:

How could you not know for your own country? Even if it's a small amount you must notice the difference between sticker and till price?

Edit: Unless MA doesn't have sales tax?
 

jlee

Lifer
Sep 12, 2001
48,518
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Originally posted by: Aflac
Originally posted by: CadetLee
Originally posted by: adairusmc
I do not have sales tax in my state. :D

Neither do I. Nor a state income tax, for that matter. :D

er, so what are you paying taxes on?

We have a fairly heavy property tax.

Per Wiki, we are 49th among states in combined average taxes. I love this place. :D
 

KarenMarie

Elite Member
Sep 20, 2003
14,372
6
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In the UK, tax... VAT, or Value Added Tax... is already included in the price of whatever you are buying.

since each state in the US has a different sales tax % rate, that cannot really be done. Well, it could.. but interstate commerce would be a b!tch. So, each state adds the tax at the register.

:)
 

chambersc

Diamond Member
Feb 11, 2005
6,247
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Originally posted by: Paddington
Those taxes are a lot higher. In America, it's probably 4-5% in most places.

Government expenditures are relatively higher in CA than USA though.
 

MrPickins

Diamond Member
May 24, 2003
9,124
787
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Originally posted by: Paddington
Those taxes are a lot higher. In America, it's probably 4-5% in most places.

8.25% here. No state sales tax, though. :)
 

Strk

Lifer
Nov 23, 2003
10,197
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Originally posted by: MrPickins
Originally posted by: Paddington
Those taxes are a lot higher. In America, it's probably 4-5% in most places.

8.25% here. No state sales tax, though. :)

What's the smile for if you're paying 8.25%?
 

MrPickins

Diamond Member
May 24, 2003
9,124
787
126
Originally posted by: Strk
Originally posted by: MrPickins
Originally posted by: Paddington
Those taxes are a lot higher. In America, it's probably 4-5% in most places.

8.25% here. No state sales tax, though. :)

What's the smile for if you're paying 8.25%?
Silly me, I meant no state income tax. The 8.25% sales tax sucks still. :|
 

Strk

Lifer
Nov 23, 2003
10,197
4
76
Originally posted by: MrPickins
Originally posted by: Strk
Originally posted by: MrPickins
Originally posted by: Paddington
Those taxes are a lot higher. In America, it's probably 4-5% in most places.

8.25% here. No state sales tax, though. :)

What's the smile for if you're paying 8.25%?
Silly me, I meant no state income tax. The 8.25% sales tax sucks still. :|

That's more like it! ;)