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Mr. RoC · 11 March 2013, 08:22 PM

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 · 11 March 2013, 10:23 PM

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 · 11 March 2013, 10:45 PM

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

mannyv11 · 12 March 2013, 01:31 AM

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 · 12 March 2013, 11:42 AM

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.

11 March 2013, 08:22 PM	#1
Mr. RoC "TRF" Member Join Date: Mar 2012 Location: Canada Watch: where you're going Posts: 277	Product discount and sales tax(s) question. 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? __________________ 1993 Tag Heuer S/EL Professional 200 Two-Tone (SOLD) 1997 Omega Seamaster Professional Mid-Size 1120 cal. (SOLD) 2012 Rolex Explorer 39mm 214270 2012 G-Shock GW-2310FB-1 2013 Rolex Submariner Date 116610LN

11 March 2013, 10:23 PM	#2
77T 2024 SubLV41 Pledge Member Join Date: Dec 2010 Real Name: PaulG Location: Georgia Posts: 42,017	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 __________________ Does anyone really know what time it is?

11 March 2013, 10:45 PM	#3
Mr. RoC "TRF" Member Join Date: Mar 2012 Location: Canada Watch: where you're going Posts: 277	Oops. That was suppose to be $19,492.50. __________________ 1993 Tag Heuer S/EL Professional 200 Two-Tone (SOLD) 1997 Omega Seamaster Professional Mid-Size 1120 cal. (SOLD) 2012 Rolex Explorer 39mm 214270 2012 G-Shock GW-2310FB-1 2013 Rolex Submariner Date 116610LN

12 March 2013, 01:31 AM	#4
mannyv11 "TRF" Member Join Date: Jun 2011 Real Name: Manny Location: MA Watch: DD,Sub,GMT,Daytona Posts: 4,510	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 =)

12 March 2013, 11:42 AM	#5
Cesium133 "TRF" Member Join Date: Sep 2012 Location: USA Posts: 2,037	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.

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