quote:
Originally posted by kalakoa
you have to pay the California sales tax which believe it or not is more than our GET
Sales tax is applied once; GET is applied multiple times. Some economists estimate that the GET is equivalent to approximately 12% sales tax.
I read a think tank piece a long time ago on Hawaii's GET and the article stated that if Hawaii implemented a typical sales tax instead of GET, the Hawaii sales tax rate would have to be in the range of 12 to 16%.
Hawaii charges GET on all business activity. Sales tax is usually limited to the final retail sale.
The California sales tax ranges from about 8.25 to 10.25% depending on all the taxing agencies grabbing their share of $$.
But you cannot compare rates alone, here is a California example where a person would pay very little sales tax:
Rent of $1000 per month. Zero sales tax
Purchases $10 of eggs, bread, milk at grocery store. Zero sales tax
Purchases $10 of used clothing and some pots/pans at Goodwill store. Zero sales tax
Purchases $10 socks at local Macy's store. 90 cents sales tax paid on average.
Purchases $30 monthly bus pass. Zero sales tax
Purchases $4 generic prescription. Zero sales tax
Goes to the dentist for a $120 checkup and cleaning. Zero sales tax
All of the above purchases in Califorina are exempt from sales tax except for the Macys purchase.
How much would a Hawaii resident pay in GET for all of the above?