Sales tax

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Sales tax

A percentage tax on the selling price of goods and services.

Sales Tax

A tax imposed on the sale of retail goods and services. That is, the government collects a certain percentage of the sale price on transactions where goods and services are traded at the retail level. While the retailers are responsible for paying the sales tax, most of the time they simply pass on the cost to customers. For example, if an item costs $10 and there is a 5% sales tax, the retailer will charge the customer $10.50. Proponents of sales taxes argue that they reward those who spend less and, therefore, do not punish those who earn more. Critics argue that sales taxes harm the poor disproportionately and can drive business to other jurisdictions. See also: VAT, Regressive tax.

Sales tax.

A sales tax is a tax imposed by state and local governments on transactions that occur within their jurisdictions.

The taxing authority determines which transactions are subject to tax and the flat rate at which the tax is calculated. Some countries, though not the United States, impose a national sales tax often called a value added tax (VAT).

sales tax

or

turnover tax

a form of INDIRECT TAX that is incorporated into the selling price of a product and is borne by the consumer. Sales taxes include VALUE-ADDED TAX and EXCISE DUTY.
References in periodicals archive ?
Don't look for a national sales tax until after the next elections.
Will a change from the current income tax system to a national sales tax system cause the price of housing to increase or decrease (e.
A national sales tax or a VAT, in contrast, would require the average price of consumer goods and services to rise relative to production costs and wages.
Under a national sales tax, a rebate would be provided to all families on expenditures up to the federal poverty level.
The survey also asked builders to consider a consumption or national sales tax as a possible replacement for the current income tax system.
With a national sales tax and free market system, those costs would decline and services would improve.
A national sales tax may well exempt many basic necessities from tax --beginning with food and clothing.
As a suggestion, the expenditure tax could be a replacement of the tax on personal income, while the national sales tax, or VAT could replace the tax on corporate profits.
A surprising 45 percent would back a national sales tax, such as a value-added tax, to finance health care.
In Washington, a national sales tax has been discussed.
These drawbacks have been more than sufficient over the years to prevent the enactment of a VAT or any of its repugnant hybrids, such as the national sales tax and the business transfer tax.
While there are many kinds of VATs around the world, the most common is similar to a national sales tax and is paid by the consumer at the cash register.

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