Message:

<p>[QUOTE=&quot;LA_Geezer, post: 3742603, member: 89393&quot;]If the sales tax rate is 7%, the tax collected on a 95¢ sale is 7¢ TODAY. Ergo, the sales tax collected by a large chain of stores on a large number of sales at 95¢—say, 1,000,000 every week on average—is $70,000.00. I&#039;m sure that there are plenty of supermarket chains that have at least that many sales in which there is a round-up; Walmart probably has them every day. Retail then reports $950K worth of sales to the various state revenue offices, not $1M, and remits $66,500.00 in sales taxes collected instead of $70K and pockets the difference. In the large chain store I worked in while I was in college, we actually had a formula that accounted for the rounded down number of 94¢ sales to counteract the rounded up ones. I never reported an actual 7% on the forms I filled out weekly for the store I worked in, but always a smaller one. The state never questioned any of our reports.</p><p><br /></p><p>If the cent is not in use, a retail chain could collect $1.05 instead of $1.02 on a 95¢ sale (@7% sales tax) if the industry is not forbidden from rounding up on all transactions. In this case, I can guess that there isn&#039;t a single large chain of stores in the USA that will give back 2¢ tax to each of its customers then report the actual tax collected to the state revenue departments. Imagine how many billions of dollars would be lost in the retail industry every year.&nbsp; Think real world, [USER=66]@Conder101[/USER].[/QUOTE]</p><p><br /></p>

Your name or email address:

Do you already have an account?

• No, create an account now.
• Yes, my password is:
• Forgot your password?

Stay logged in