Sales tax in the US

[Locut0s]

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.

 

[FelixDeCat]

...in the USA?

No,

Its R. O. C. K. in the USA!

 

[imported_Mike]

in the what?

 

[sash1]

sales tax in the blank? cool

 

[SonnyDaze]

...21st century is affecting the global warming conditions of the greater......

 

[Locut0s]

Oops, I hate the enter key!

 

[everman]

Same thing, but your taxes are a lot higher. However some states don't have a sales tax.

 

[adairusmc]

I do not have sales tax in my state.

 

[jlee]

Originally posted by: adairusmc
I do not have sales tax in my state.

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

 

[Syringer]

Sales tax is added on, not like in Europe..

 

[Ika]

Originally posted by: CadetLee

Originally posted by: adairusmc
I do not have sales tax in my state.

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

er, so what are you paying taxes on?

 

[Locut0s]

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.

 

[intogamer]

Thats how it works here...?

Maybe because your taxes are soo high

 

[Locut0s]

Originally posted by: intogamer
Thats how it works here...?

Maybe because your taxes are soo high

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]

Originally posted by: Aflac

Originally posted by: CadetLee

Originally posted by: adairusmc
I do not have sales tax in my state.

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

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.

 

[chambersc]

What happens in England that is so confusing with sales tax?

 

[KarenMarie]

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.

 

[Locut0s]

Originally posted by: chambersc
What happens in England that is so confusing with sales tax?

They have the VAT

http://en.wikipedia.org/wiki/Value_added_tax

Actually the GST here in Canada is a form of VAT but we also have Provincial sales tax that works just like in the US.

 

[Paddington]

Those taxes are a lot higher. In America, it's probably 4-5% in most places.

 

[chambersc]

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]

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]

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%?

 

[Whoozyerdaddy]

No local sales tax
No state sales tax
No state income tax

:beer::beer:

 

[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. :|

 

[Strk]

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!