sales tax

Show Summary Details

Quick Reference

A tax on the sales of a business. A sales tax is normally a fixed percentage of total sales of some classes of goods and services. Sales taxes are used to raise revenue, for example, by some states of the US. While in principle a value-added tax is better for economic efficiency, a sales tax is much simpler to administer when much of the business being taxed is done by firms whose business spreads over several states.

Subjects: Economics.

Reference entries

See all related reference entries in Oxford Index »

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.