Last night I was thinking about the part of cent that is taking as sales tax when you buy something from any store or shop. For example, this afternoon I bought from IN-N-OUT Cheese Burger combo and it cost $6.40 the tax is %7.75; the total charge that I suppose to pay is $6.40 + $0.496 = $6.896. However, the smallest currency part is $0.01 or a cent. Thus, I had to pay $6.90 with 0.004 profit for the business or the government?!


If we assumed that there are one transaction per each citizen in the US. 200,000,000 * $0.001 = $100,000 per day assuming that 50 million citizen are abroad or did not make any transactions $100,000 * 364 days = $36,400,000 is this a lost from the government budget or profit for business.


The solution for this problem is to develop the system to the maximum float number that the register can calculate. Or the government introduce a standard for the number of digits after the decimal point.


Charge the customers in the same way and calculate that part; at the end of year pay the accumulative parts of cents to the government as addition to the sales tax. There will be a money leak at the end of the equation because a floor or ceiling approximation function will be used and a cent will be added to the tax or subtracted. However, the leak will be one cent multiplied by the number of business and reduced the leaked (lost money). In the same way, the income tax and property tax. The income tax and property tax one transaction a year but sales tax many transactions daily.



Sincerely,
Mohammad Alkahtani