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Saturday, July 8, 2017
GE Tax Equivalent to 13% Sales Tax
By Andrew Walden @ 1:51 PM :: 6465 Views :: Hawaii Statistics, Taxes

State and Local Sales Tax Rates, Midyear 2017

From The Tax Foundation, July 5, 2017 (excerpts)

…The five states with the highest average combined state and local sales tax rates are Louisiana (10.02 percent), Tennessee (9.45 percent), Arkansas (9.34 percent), Washington (9.20 percent), and Alabama (9.03 percent).

The five states with the lowest average combined rates are Alaska (1.76 percent), Hawaii (4.35 percent), Wyoming (5.26 percent), Wisconsin (5.42 percent), and Maine (5.5 percent)….

The sales taxes in Hawaii, New Mexico, North Dakota, and South Dakota have broad bases that include many business-to-business services….

Hawaii has the broadest sales tax in the United States, but it taxes many products multiple times and, by one estimate, ultimately taxes 99.21 percent of the state’s personal income.[18] This base is far wider than the national median, where the sales tax applies to 34.46 percent of personal income.[19]

read … State and Local Sales Tax Rates, Midyear 2017

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4.5% GE Tax = 13% Sales Tax

Do The Math:  99.21% / 34.46% = 2.88 x 4.5% GE Tax = 13% Sales Tax

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