Topic

Many states across the country and most countries in the world have some sort of tax applied to goods and services. This additional tax is known as a sales tax. A sales tax is an additional amount that is applied to products imposed and collected by the government. Governments use the revenue from sales tax on schools, infrastructure, and general budgeting needs. Sales taxes are different than other taxes like income and property tax because the tax is applied when the transaction occurs and is not due on a quarterly or yearly schedule. In the U.S, sales taxes are imposed at the point of sale and are not reflected in the price of the product. In European countries, sales tax is included in the price of the good, so while the tax is still levied at the point of sale, the customer doesn’t see the change in price.