Product discount and sales tax(s) question.

[Mr. RoC]

I recently had a discussion/debate with a few co-workers on (general) product discount and sales tax and it seems like a "half full... half empty" point of view.

Scenario:

Item: $23,000 MSRP
Province Sales Tax: 13%
Discount: 25% off
Final Price Paid: $1949.25

Person #1: Says sales tax(s) is a separate entity and should not be part of the equation as everyone pays taxes even the store owner when they brought the product into the store and the store is not going to pay the sales tax for you so the discount is still 25% off.

Person #2: Says the "real" discount is 12% off because you're paying 13% sales tax. A "true" 25% off discount would have had a final price paid and not a penny more would have been $17250.00

So what is your take on this... Person #1 (Half Full) or Person #2 (Half Empty) correct?

[77T]

Person #3 (me) says skip the tax and get a better price from a trusted seller here on TRF...

Of the 2 you spoke with, the real discount is 25%. The tax is the tax - unavoidable unless you listen to Person #3

[Mr. RoC]

Oops. That was suppose to be $19,492.50.

[mannyv11]

Person 1 is correct IMO tax is tax. It is avoidable if you ship out of state etc. Or like previously stated go with person number 3 =)

[Cesium133]

IMHO (which sound like the minority) tax is the little "*" in a story about getting a good discount. Personally, I always feel like person #2...you get 25% off but only feel like you're getting 12%. I simply look at the total cost, regardless of where it originated from.

Don't even get me started on loan percentages...I never think my house cost $x because I think it cost $xxx from all the interest. I just refinanced and cut my interest in half and I feel like a free man.