Friday, December 11, 2009

I read in newyork times

Something I read in new york times.

A wholesaler sales a clothe at $10 + $1 sales tax to the Tailor, so wholesaler can pay $1 sales tax to government.A Tailor sews a nice dress and sells it to store man.The store man has to pay $30+$3 sales tax to the Tailor, so Tailor can pay $3 sales tax to the government but he pays $2 instead of $3 because $1 is already paid by wholesaler.Now store man sold that dress to costumer at $50 + $5, sales tax.So he can pay $5 sales tax to government, but store man pays $2 to government because $2 + $1 is already paid by Tailor and wholesaler.


Can you tell me what did you understood?
If have question about this article than meet me on Monday with $10 + $1, sales tax.

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