That calculation has you calculating a tax on a tax. This makes my point even more pointed. The car costs 38,500 and you pay a 30% tax of 11500. Multipling the total price by the tax rate of 23% gives a tax on the car plus a tax on the tax. This is worse than I thought. It is impossible to tell what the actual tax rate is since 23% includes the tax on the tax.
And I completely disagree with the logic of the article you posted in support of this convoluted method.
Final Price = Price +Tax = Price + 30% that is the only clarity in this mess.
That calculation has you calculating a tax on a tax.
You are really headed for the moon now, you been talking to lewislynn too much.
Given a payment that includes tax within it, as you specified.
justshutupandtakeit: "New car 50 Gs including tax. What is the tax? "
To calculate the amount of tax in that payment one multiplies the payment by the tax inclusive rate.
That my freind is not a tax on tax, that is the calculation of amount of tax contained within a tax inclusive payment.
The rest of your reply, based on a garbage assumptions, is merely more garbage.
GIGO, Garbage In Garbage Out
Final Price = Price +Tax = Price + 30% that is the only clarity in this mess.
Your personal preferences have little to do with the acutal situation, which is to enact an tax system that replaces an income/payroll tax system. Not some state sales tax irrelavent to the debate.
| The Wrong Camera: The Denominator of the Tax Incidence Equation. Dan R. Mastromarco; LLM, Argus Group, Washington D.C. Tax Analysts Document Number: Doc 1999-32575 Citations: (October 8, 1999) B. Use a Consistent Size Screen to Portray It.
[129] In making comparisons between alternative taxing systems it is important to ensure therefore that these comparisons are consistent, fair in terms of expectations, and are well explained. Fair comparisons eliminate and do not exacerbate confusion over a relatively critical point as the means of expressing the tax rate. The only means to do so is to ensure that a tax-inclusive rate is compared with a tax-inclusive rate.
|
Good Grief!!! He's been studying looey-rithmetic!
That's TOO funny!
That calculation has you calculating a tax on a tax. This makes my point even more pointed. The car costs 38,500 and you pay a 30% tax of 11500. Multipling the total price by the tax rate of 23% gives a tax on the car plus a tax on the tax. This is worse than I thought.It's an iterative process unless you convert the inclusive rate to the exclusive rate.
x 23% x 23% x 23% x 23% x 23% x 23%