Taxes Taxes are part of all are lives. In this discussion you have the opportuni
ID: 3009701 • Letter: T
Question
Taxes
Taxes are part of all are lives. In this discussion you have the opportunity to look at one particular type of tax. Choose between finding property tax, sales tax or income tax. Share your thoughts on paying taxes and post your answers to one of the three questions listed below.
2. Calculating Sales Tax
Go to http://www.taxadmin.org/fta/rate/. It’s August and you need to buy school clothes and supplies for your five children. You live in the northwestern corner of Connecticut, within easy driving distance of both Massachusetts and New York State. What would the sales tax in each state be on a total of $830 worth of purchases? If shopping outside the state would cost around $20 in gas, in which state would this shopping trip cost the least?
Explanation / Answer
sales tax in new york city on purchaces of above $110 is = 8.875%
sales tax in Massachusetts = 6.25 %
On a total purchase of $ 830 the sales tax in New York city would be = 8.875% of 830 = 8.875/100 * 830
= $ 73.6625
On a total purchase of $ 830 the sales tax in Massachusetts would be = 6.25% of 830 = 6.25/100 * 830
= $ 51.875
while travelling outside the state costs around = $ 20 in gas
hence total cost of the shoping trip in New york = 830 + 73.6625 + 20 = $ 923.6625
hence total cost of the shoping trip in Massachusetts = 830 + 51.875 + 20 = $ 901.875
=> SHopping trip to Massachusetts would cost least .
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