4 ms·
It's not hard to "figure something else out"; this problem became a political issue in Australia in the 1980s and was finally solved with a federal goods and se
by sjy 7y ago
It's not hard to "figure something else out"; this problem became a political issue in Australia in the 1980s and was finally solved with a federal goods and services tax in 2000, the proceeds of which are distributed back to the states by an apolitical bureaucracy. There are no more local or state sales taxes. I am sure other countries have found similar solutions. The difficulty is overcoming the political and constitutional barriers to further consolidating federal power in the United States.
- frosted-flakes 7y agoYep. Canada has the federal General Sales Tax (5%), and most provinces have a separate Provincial Sales Tax (varying rates). Some provinces have combined these into the Harmonized Sales Tax, which is collected by the Canada Revenue Agency and the provincial portion distributed according to their respective rates. Other levels of government are not permitted to charge sales tax, or even income tax. Most cities' primary sources of income are property tax and development fees.