Thursday, March 11, 2010

U.S. Sales Tax Rates Hit Record High -

U.S. Sales Tax Rates Hit Record High - "While President Obama's push to raise federal income taxes for the wealthy gets lots of attention, the continuing upward creep in the sales tax rates imposed by state and local governments has gotten less notice.

But Vertex Inc., which calculates sales tax for Internet sellers, reports that the average general sales tax rate nationwide reached 8.629% at the end of 2009, the highest since the Berwyn, Pa., company started tracking data in 1982. That was up a nickel on a taxable $100 purchase from a year earlier and up nearly 40 cents for the decade. The highest sales tax rate in the country now stands at 12%."

Here in Illinois the governor proposed yesterday to raise it from a flat 3% to a flat 4%. He called it an education surcharge or something, but it's an income tax hike. The key to understanding this is to stack up all the taxes people pay in a given state. And as we all know, you also need to add on the amount they pay in assessments to their CID if any, because that is really a disguised tax in most cases.

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