`(b) TAX PAYMENTS DATE-`(1) GENERAL RULE- The tax imposed by this subtitle during any calendar month is due and shall be paid to the appropriate sales tax administering authority on or before the 15th day of the succeeding month. Both Federal tax imposed by this subtitle and confirming State sales tax (if any) shall be paid in 1 aggregate payment.
Then I saw this in the paper I posted last night:
Second, it entices states to be collecting apparatuses, by allowing them to keep one-quarter of 1 percent of the revenue collected if they choose to conform the state tax base to the federal base and administer the federal tax.
The federal base is a tax "of the gross payment" so here's what would have to happen to send an aggregate payment of both taxes being "of the gross payment"
Under their "cooperative agreement" and both tax bases being "of the gross payment" there would have to be a combined federal/state tax rate.
The federal rate ("23% of the gross payment" the first year) plus a state rate of say 6% "of the gross payment". Making a combined federal/state tax inclusive rate of 29% (of the gross payments).
29% tax inclusive in real sales tax terms would be a combined federal/state tax rate of 40.85% (29/71) tax exclusive.
It just keeps getting uglier.
Since states will be forced to eliminate their income tax and combine it with the sales tax they already have, it will make for a larger rate, although since the base of taxable goods will be larger (most states don't tax food and housing) the added rate probably won't be as high as 10%. I would guess it would typically be in the 6-8% range, resulting in a total sales tax of slightly more than 35%. Yes, very ugly.