In other words, you should be able to find a good deal on a computer or a better-quality TV without ever having to pay retail sales tax.
While it’s true that many state and federal tax authorities have been cracking down on those pesky sales tax bills, those sales taxes are not the only things that go into the tax equation.
Most of us pay sales tax on the food we buy at one of the stores that sells our products. That’s because the stores don’t charge a sales tax on the food they sell (and that’s a good thing). Most retailers in the US don’t collect sales tax because they’re afraid that it would drive up the prices of their goods.
Its true that many retailers in the US are paying sales taxes on the food they sell but theyre not selling it across state lines. Sales tax is collected by the state where you live and paid into a federal account.
the thing is, retailers use various tax code loopholes to avoid paying sales taxes. Often, they use a “double tax” as both the state and federal tax are assessed on the same item. In the case of food, that means that the state will tax the total amount of the food at the beginning of the year, and then the federal tax will be applied on top of the state tax to the amount of the food that’s not taxed.
So for example, if you are buying a gallon of milk, the milk tax is calculated by the state and then the state tax is added to the federal tax. The federal tax is added to the total sales tax, and then the state tax is added to the total sales tax. In this case, the state and the federal are both assessed on the same amount of milk, and no sales tax is collected.
The federal tax is the first step, and it starts with the sales tax. The state tax is the second step. The third step is the food tax. It is a tax on the food itself rather than what’s in it. Like our food tax, it is not levied on top of what’s in our food.
The federal tax is simply the federal government’s portion of the total sales tax. The state tax is the state government’s portion of the total sales tax.
In other words, the federal government only collects sales tax on the food itself and not on the actual food itself and the state governments merely collect the sales tax on the food, but not the actual food. For that reason, our federal and state governments taxes are almost the same.
This is somewhat of a controversial tax, because it’s not just the federal and state governments that collect this tax. In the United States, most retail establishments get their food tax by way of the Food and Drug Administration. This is because there is a federal law that says that those who sell food must pay the FDA taxes on their food, although it is not required for all food to be sold in a store, just some foods like eggs and milk.