dave@perle.UUCP (Dave LeReverend) (11/21/88)
Has anyone out there had trouble figuring out the tax on long-distance phone calls? I've got two room-mates, and it's hard enough determining who called where. Now, we've got to figure out two different tax rates on those calls. And (can you believe it?) we've got to pay TAX on the TAX! After much haggling and a call to Ma Bell, here's the solution: Let "x" be the "chargeable messages" Federal tax = 10% of "chargeable messages" or F = (0.1)x Provincial tax = 8% of (chargeable messages plus Federal tax) or P = 0.08(x + F) = 0.08(x + 0.1x) = [0.08 + (0.08)(0.1)]x = (0.08 + 0.008)x = (0.088)x Total tax = Federal Tax plus Provincial Tax or T = F + P = (0.1)x + (0.088)x = (0.1 + 0.088)x = (0.188)x The bottom line (literally) is that you pay 18.8% tax on long-distance calls. ------------------------------------------------------------------------------- "I found all of this very taxing." -------------------------------------------------------------------------------
soley@ontenv.UUCP (Norman S. Soley) (11/23/88)
In article <400@perle.UUCP>, dave@perle.UUCP (Dave LeReverend) writes: > And (can you believe it?) we've got to pay TAX on the TAX! So this is new? > The bottom line (literally) is that you pay 18.8% tax on long-distance calls. The feds tax virtually everything at 12% of the wholesale cost, then the retailer bases their markup on the price including tax, the we pay sales tax on the whole shooting match. At 18.8% you're getting off cheap compared with just about everything else you buy on a day to day basis. -- Norman Soley - Data Communications Analyst - Ontario Ministry of the Environment UUCP: uunet!attcan!lsuc!ncrcan!ontenv!soley VOICE: +1 416 323 2623 OR: soley@ontenv.UUCP " Stay smart, go cool, be happy, it's the only way to get what you want"