Sales tax

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Sales tax

A percentage tax on the selling price of goods and services.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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).

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.

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.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
IPTs and retail sales taxes on premiums increase the consumer price of insurance.
Zelenak is certainly correct about the important leadership role that Morgenthau played in rejecting the retail sales tax and accepting the mass income tax.
(80) The reduction in revenue volatility was to be accomplished through a substantial reduction (and flattening) of the individual income tax rates, a complete repeal of the state's corporate income tax, and a partial repeal of the general retail sales tax (the state portion of the RST was to be repeal with local sales taxes remaining).
Based on the above analysis, a change in the method of financing local government away from property taxes in favor of retail sales taxes is likely to have an adverse long-term affect on the ability of local governments to fund growth in their expenditures, provided that there is no other fundamental change in the relationship between the causal variables and pull factors.
(41.) NEAL BOORTZ & JOHN LINDER, THE FAIRTAX BOOK (2005) (arguing that the federal income tax should be replaced by a federal retail sales tax).
(4) For an overview of the economic issues relevant to broad-based consumption taxation, see CRS Report RL32603, The Flat Tax, Value-Added Tax, and National Retail Sales Tax: Overview of the Issues, by Jane G.
A national retail sales tax is the easiest consumption tax to understand because of its similarity to retail sales taxes at the state and local levels.
Also, the city is working on slicing an increment from that problematic retail sales tax for downtown redevelopment use.
Tables 1 and 2 examine retail sales tax collections (a proxy for retail sales) by sector for the city of Memphis for the 2001 and 2002 fiscal years (Table 1) and year-to-date (Table 2, July through September, latest available).
Laying siege to the welfare state and penetrating it from different angles with new savings accounts will work far better than calling for an immediate replacement of the income tax with a flat tax or national retail sales tax, according to the author.
The alternatives to the income tax--the retail sales tax, value added tax (VAT), and the Hall-Rabuska Flat Tax--are described and critiqued in Chapter 7.
Chapter seven examines consumption tax alternatives to the income tax, including a retail sales tax, a value-added tax, and a personal consumption tax.