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Purchase Tax

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Purchase Tax
A proposed tax on a purchase, rather than on a sale. That is, the purchaser of a good, rather than the seller, is obligated to pay the tax. In practice, there is little difference between a purchase tax and a sales tax because sellers usually pass on the tax to purchasers in the form of a higher price. A purchase tax has been suggested as an alternative to the income tax in the United States.


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I suggest a local purchase tax of five per cent on every purchase except food.
Fortunately, two months later the Chancellor of the Exchequer thankfully reduced the rate of purchase tax from 45 to 25 per cent, making way for a more affordable British sports car.
 
 
 
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