Suburban Chicago Retailers In Trouble For Offering To Pay Sales Tax For Customers

Because in Illinois, like a lot of places, it is illegal for retailers to pay the sales tax for you.
Ain’t big government great?

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  • http://Array kbiel

    This is stupid. There are two ways a business can pay the sales tax:
    1) Keep the price the same and pay the resulting tax for you.

    2) Lower the price to the point where the price plus the tax equals the original price, making the tax less.

    Let’s see this in action. A store decides to attract customers with a reduced total cost. Assume an item that costs $100 and a tax rate of 8.25%.

    1) 100 * .0825 = $8.25 paid by the store
    2) 100 = 1.0825 * x (where x is the price)
    x = 100/1.0825
    x = 92.37 (rounded down because the store wants to keep the total cost at or below $100)
    92.37 * .0825 = $7.62 tax paid by the customer

    The moral of this story? Lawmakers and bureaucrats are stupid.

  • http://www.taxlienproperties.net/ Government Tax Sales

    That’s the craziest thing I ever heard! Why would the government care as long as it is paid?

  • http://www.bikebubba.blogspot.com/ Bike Bubba

    Crazy–I remember European fellow students commenting that it was always a nasty surprise when sales tax was added to any purchase. I gotta say; they were right.

    Odd as well to think that Illinois is fighting to make sure that customers see exactly how much state government is extracting from their latest purchase. You would think socialists like those working for Blagojevich would catch on.

  • WOOFX

    While it is OK for a corporation to pay a CEO’s income tax.
    What a world,

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