Sales Tax

Sales Tax

This is the type of tax that most of us encountered first in our lives. A child may dig through the couch cushions, save allowance, or do chores to earn just enough for a specific toy that they have had their eyes on, but when they get to the cashier they find that they are still a little short (Kids.gov, 2016). Where did they go wrong? Of course they were probably not aware of sales tax. Sales tax applies to most common purchases, and is a percentage of every dollar spent. Stores usually apply this tax at checkout. Sales taxes are usually imposed by individual states, and each state has a different tax rate based on state legislation which can range between 0% (like Alaska) to 7.5% (like California). Sales tax is one of the largest forms of tax revenue for many states.
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