3 ms·
One big reason why the sales tax is NOT included in the price of the item, is that the sales tax you pay is deductible from your federal taxes. To prove the am
by drone 12y ago
One big reason why the sales tax is NOT included in the price of the item, is that the sales tax you pay is deductible from your federal taxes. To prove the amount of sales tax you pay, should you choose to itemize deductions, you must have itemized receipts.
With itemized receipts, you have a line for the sales tax which serves as proof, if the tax were included in the price, you'd then have to have special indicators for which items are taxable on the receipt, and then calculate for each item on each receipt.
- paddy_m 12y agoWhen I just did my taxes, it was sales tax or state + local income tax. Given that I live in NYC, state+local was higher than any reasonable esitamtion of sales tax.
- drone 12y agoAhh, yes, I live in a state with no income tax, so sales tax deduction tends to be substantial for me.
- bbanyc 12y agoIncluding the tax in the advertised price doesn't prevent it from being separately listed on the receipt. It'll say something like "Total $120, Included Tax $20" instead of "Subtotal $100, Tax $20, Total $120".