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Wednesday, Apr 16, 2014
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PRAIRIE GROUCH  
GRAND PRAIRIE TX  
April 13, 2013 6:43pm
 
Michael.......Your assumptions do not take into
account that this tax is inclusive. Most workers
pay only the employee part of the payroll tax so
your calculations are misleading.
The 23% inclusive tax is the same as a 30% exclusive
sales tax rate. Discounting the employee payroll tax (7.65)
leaves you with a tax rate of 22.35. Because the
tax is inclusive, the state sales tax in Texas will
be about 10 percent of the original price. So now,
we have a total sales (fair and state) tax a little
over 32 percent after allowing for the payroll tax
elimination for most purchases in Texas.
     
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