Fair Tax

Depends on how deep you what to get into it... There's a sliding scale based on how much you earn, but you're basically paying approx 30% of your gross income, and we have a standard tax on all purchases of 15%. Some items, like Fuel attract a much higher rate of Tax.

Compared to the US, we'd pay way more tax on Fuel and way WAY more on Liquor. Our sales tax is also higher than the average US county but it's better because everyone knows what it is and it's already factored into the damn price tag so you don't have to do any sums before taking it to the counter!

Admin's an economy-nerd so he can probably explain it in more detail.

nzlockie: That's how it was in Japan, sales tax was factored into the sticker price so what you saw was what you got.

I'm not sure why US companies don't do that honestly.

TheCP: In my limited experience, that's the "norm" everywhere in the world. Which is probably why the US does it the way it does. You guys love to do things different to everyone else.

0 degrees is freezing, 100 degrees is boiling, 10mm in a cm. 100 cm in a m. 1000m in a km... it all just makes sense! Come on America!

nzlockie: We don't choose it.

nzlockie: 12 inches in a ft, 3 ft in a yard, 1760 yards in a mile.
3 teaspoons to a tablespoon, 16 to a cup, 2 to a pint, 2 to a quart, 4 to a gallon.

What is so complicated?

TheCP: I think a major reason is the difference in taxation.
In any given city, there may be a state, county, city, region, and any additional sales taxes on any item. http://www.revenue.state.mn.us/businesses/sut/factsheets/FS164.pdf
Since, sales taxes are collected, but not kept/earned, it might be easier to account for COGS this way, especially if online items are sole, the item is trashed, the item is for tax-exempt purposes, or it is transferred to another store.

And, you know, tradition and all that.

cowboy0108: Better than unfair taxes, but worse than no taxes.

ADreamOfLiberty: Wow. I thought even libertarians wanted governments to do things like run underfunded judiciaries and organize some sort of national defense.

ADreamOfLiberty: True. If there were no taxes there would be no improvement.