They should just say it's a 29.87% rate, because everyone will see the $100 price on the receipt and the $29.87 tax on the receipt. But they try to be cute.
Well said.
687 posted on 12/30/2007 4:11:16 PM PST by mysterio
“Cute” is not involved. Both tax inclusive and tax exclusive prices are clearly stated on the receipt. The amount a person pays over the tax year, however, is the effective tax rate.
The receipt only states the marginal tax rate which is much higher than the effective one.
692 posted on 12/30/2007 6:34:25 PM PST by baybabe