If McDonald's is a huge fast food joint, why the outrageous eat in tax?

Question

McDonald's has a tax for eating in. I'll order a meal and get a 23 cent eat in tax on top of the regular tax. Also there is a take out tax. Why?! They sell over a billion burgers a year. Thats not to mention the fries and drinks. So why the stupid tax. Don't they get enough money that they need extra tax. Some one solve the problem.

Answer 1

Taxes are not imposed by the retailer (McDonalds) but the city, the state and the feds.

Answer 2

ok ok the tax isn't instituted by the fast food joint but by the government

Last year the Washington Post printed an article setting forth the cost of federal and local taxes to the common man.

First, federal taxes represent about one-third, 33.6 percent, of the cost of every item you buy. This means that if you buy an item for $100, $33.60 ends up in the federal coffers. Federal taxes increased the cost of the item by 50 percent! [Do the math: $66.40 + (66.40 x.50) = $99.60.]

There’s more. There are still state and local taxes. State and local taxes take about 14.4 percent out of every dollar of the cost of an item. Add that to the federal share and you have 48 percent of every dollar spent for an item at retail ending up in some government's tax treasure chest.

Back to the math. That item you spent $100 for? Well, about $48 goes to government. That means the real cost of the item was $52. This means that throughout the manufacturing, distribution and sales process, the item has undergone a 92 percent price increase just to satisfy the avarice of government. [$52 + (.92 x 52 ) = $99.84.]

Don’t forget your income taxes either. To come up with the $100 you need to purchase the item, you have to earn about $166.00. Again – do the math. Take that $160 and deduct your income taxes – about 33 percent federal and another 6 percent state, and various payroll taxes, and you have (at a maximum) 60 percent left. [$166 x .60 = $99.60.]

So you earn $166 and use it to buy something that costs $100. But about $48 of that cost is going to taxes. Out of your $166 in earnings you find that $114 ends up in some government checking account.

Your true tax rate? Well, how do you like 69 percent?

....Consumers already are charged an average nationwide rate of six percent on restaurant tax, according to the National Restaurant Association, Washington, D.C. Kilpatrick's proposed fast-food tax would be in addition to the six percent general restaurant tax, a spokesman for the mayor said.

Answer 3

Because McDonalds is an American business, and just like all American businesses their untold motto is "Charge the costomers lots, pay the employees little, and buy the best bargans"! Actually, this 'tax' is only in some areas, my Mcdonald's doesn't charge, but they do have the part that says it on the recipt. In FL, they did actually charge for eating in and out and my guess was to help pay for the cost of the packaging.

Answer 4

Do you think McDonald's has anything to do with the taxes that are charged???

There is state sales tax on dine in food...no tax on take out.

Answer 5

i didnt know they had a take out tax, but i think the dine in tax is to cover cleaning up after the filthy slobs make a mess, spill ketchup and stuff, to pay for supplies and extra time spent i guess, as for the take out tax i would guess that is for the sign and the little ordering screen

Answer 6

it happens