HC Eredivisie wrote:But why? Why all those different tax rates? Why not one national tax rate? Why do you have to make it so complicated?Gallia- wrote:
It's not just states.
You'd need to calculate prices by individual county, city, or borough. Some boroughs or whatever subdivision of cities probably have higher tax rates than others from different authorities, so you'd need to pretty much tally up inventory costs for each store individually, each time you're stocking inventory. It's a lot more work than you seem to assume and it's much easier to simply list a non-tax price that can be universally applied, then add it at the register for each store's individual costs.
If you could display prices electronically instead of with little stickers, it would probably be done, but you don't do that, so it isn't. I suppose in the future when you can geographically locate people browsing Wal-mart's website or whatever and have access to tax databases, the website will automatically display your final price based on local sales taxes on the website, but probably not in the store.
What actually happens is that most Americans can list off their various local and state tax percentages at the drop of a hat, probably tell you which portion of the local tax code it's listed under, and perform the calculations for prices in their heads before going to the register.
Welcome to Federalism.
A single national sales tax would require collaborating with each city mayor in the country, each county commissioner, and each governor, in addition to the Congress. Rather than convene literally every elected leader in the country to agree to a single nationwide tax, we just say "fuck it" and let them figure it out instead.
HC Eredivisie wrote:Wait, are those taxes used simultaniously on a product? So you have to add three tax rates before you know what you have to pay? How can you function at all?Galloism wrote:Because the city tax funds the city government, the county tax funds the county government, and state tax funds the state government.
Yes, I think this is very odd.
No.
Usually a county's, city's and state's sales taxes are added together into a single percentage. My city's sales tax rate is actually 2%, but it's added together with 4.225% state tax rate and the county tax rate, to produce something close to 7.4% sales tax. So it's actually gone up very slightly then what I remember. RIP me.
Most people can quote the combined tax rate on the spot and calculate using that.
The "sales tax" in America covers the state, local, and county governments' individual sales taxes as a whole.