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To: justshutupandtakeit

I have heard of it from the FT folks but consider it a fraud which distorts the real tax rate. Calculating an inclusive rate gets very complicated nowhere near as simple as figuring out a 8% rate or 10%.

LOL, tax inclusive rate is absolutely no problem at all it is a bills defined rate to be applied to NRST + shelf price.

Multiply the NRST included payment for goods and services by the legislated rate, the amount of tax that is listed on your purchase receipt will match. If it doens't you yell at a clerk and get a store manager to make it right just as you would do today in any retail sale tax situation.

A seller wanting to calculate the tax inclusive price from the amount he expects to retain for his goods or service after remitting tax collected , simply uses the formula:

(Amount retained from payment after NRST)
(1- NRSTrate)

To establish the NRST tax inclusive payment required for products to collect the correct amount of NRST in the payment.

Don't see that as paricularly mysterious or difficult or requiring extensive complicated tables.

This does not affect me since arithmetic is not a problem. But we are in an era when many can't do simple division.

Same ones don't know to multiply either, and to check the rate against amount of tax collected in a reciept now is beyond many of them, and less likely to even occur to them to do so far as my experience in dealing with the MTV set.

Those that are inclined to chech tax amounts on a sales slip, appear to be wizards on their handheld calculators and such, inspite of all their other short comings. A problem that I figure is probably the root of why they are arithmetic challenged in the first place.

Don't see the problem in either case, the first don't care and are not inclined to in the first place, no matter what they do. The second case has it covered.

1,117 posted on 05/24/2005 8:35:50 AM PDT by ancient_geezer (Don't reform it, Replace it!!)
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To: ancient_geezer

The ONLY reason to use an inclusive rate is to hide the size of the exclusive rate. No one would propose such a nightmarish method otherwise.

Multiplication is easier than division for the simple fact that the latter uses the former.

New car 50 Gs including tax. What is the tax? 50000/1.23=40650.41, 50000-40650.41= 9349.59.


1,130 posted on 05/24/2005 9:02:30 AM PDT by justshutupandtakeit (Public Enemy #1, the RATmedia.)
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