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> If you set the tax rate to a percentage of revenue which exceeds the business's margins, all businesses go out of business. Unless I misunderstand, isn't thi
by withinboredom 2y ago
> If you set the tax rate to a percentage of revenue which exceeds the business's margins, all businesses go out of business.
Unless I misunderstand, isn't this EXACTLY what the US does to ensure certain businesses are or aren't profitable in their smaller jurisdictions? This is how they entice businesses to come to their cities/states and they even compete on giving bigger tax breaks. I assume they also do the exact opposite to keep out businesses they don't want.
> The issue here is that customers in Oregon are going to pay a lower price than customers in California because Oregon has lower sales tax and the tax is part of the price they pay.
They're already doing this ... this just makes it so you can do simple addition in your head while you walk around the store instead of throwing in some multiplication -- and if you live in a state where certain kinds of items have different tax rates, knowing what those tax rates are.
This isn't rocket science, I don't understand why you are making it seem so complicated.
- AnthonyMouse 2y ago> Unless I misunderstand, isn't this EXACTLY what the US does to ensure certain businesses are or aren't profitable in their smaller jurisdictions? Traditionally this is called fines rather than taxes. The ostensible purpose of general sales tax is not to bankrupt every grocery. > this just makes it so you can do simple addition in your head while you walk around the store instead of throwing in some multiplication Why do you have to do any math in your head at all? The register will do it for you at the end.
- withinboredom 2y agoSurely you’ve been poor with 40 bucks in your pocket and trying to get as many items as possible?
- AnthonyMouse 2y agoWhen the prices are listed pre-tax then use the amount of money you have in pre-tax dollars. If you have $40 and the sales tax is 7% then use your phone to divide your $40 by 1.07 and that's how much you have to spend. You don't have to do the multiplication for each item individually and items with different tax rates are typically entirely different classes of product which are sold in different stores.