Longhair
Elite Member
No problem! I haven't watched a minute of NFL since CK pulled his stunt and the league did nothing about it.
State sales tax has nothing to do with federal law.
POLL - How would you feel if they stopped making pennies ?
- Thread starter Xxray
- Start date
Im sure it would be, but why invite problems?
Carl-NC
Senior Member
You're seem to be confusing "tax rate" with "final purchase price." A 4% tax rate on a $1.00 purchase is $1.04, and without the cent you would be charged $1.05. But a $1.01 purchase with tax is $1.05 and a $1.02 purchase comes to $1.06, and for all three cases you would pay $1.05. And in all cases, the tax rate is still 4%, even though it seems to range from 4% to 6%. As you get into total purchases well beyond $1, the rounding amount is relatively "in the mud," and over time it averages to a zero difference.
The assumption that states would always round up is highly unlikely. More likely, if Congress abolished the cent then they would include a federal law that all purchases must be rounded (up or down) to the nearest 5¢. We already do this on Federal tax returns, where entries are rounded to the nearest dollar.
Thanks for the concern TP, but I'll be fine. I don't feel as if I have invited anything, when you think about it, and I couldn't care much less if someone was planning a home invasion over something I said on a metal detecting forum, they are welcome to try.
