The politicians who passed it like to say it's a 1% increase.
Is it?
2006-10-12 18:42:01 · 3 answers · asked by Anonymous in Science & Mathematics ➔ Mathematics
In a manner of speaking. The numerical tax calculation increases by 1%. However the amount of money that you spend on sales tax (assuming your spending habits don't change) is actually raised by 16.7% (i.e. 7 is 116.7% of 6)
2006-10-12 18:47:35 · answer #1 · answered by J C 3 · 2⤊ 0⤋
It's not. It's much more than 1%. It's a 16.67% increase, calculated as follows; 100(7-6)/6=16.66666% or rounded to 16.67%.
But what you might not have heard the politicians say is "it's a one percentage point increase." If this was what they actually said then they are correct.
2006-10-13 11:15:01 · answer #2 · answered by tul b 3 · 0⤊ 0⤋
Let's say you have a taxable sales figure of 1000.
previous sales tax (at 6%) = 0.06 * 1000 = 60
new sales tax (at 7%) = 0.07 * 1000 = 70
% increase in sales tax = (70 - 60)/60 = 7/6 - 1 = 1/6 = 16.67% (approximately)
In general, let's say you have a taxable sales figure of X.
previous sales tax (at 6%) = 0.06 * X = 0.06X
new sales tax (at 7%) = 0.07 * X = 0.07X
% increase in sales tax = (0.07X - 0.06X)/0.06X = 0.01/0.06
= 1/6 = 16.67% (approximately)
Therefore, it's actually a 16.67% increase in sales tax (relative to the old sales tax), but it's a 1% percentage increase in sales tax (7% - 6%).
2006-10-13 01:52:04 · answer #3 · answered by JoseABDris 2 · 1⤊ 0⤋