Small math problem

[django1]

I'm out of my league here, help! Starting from a total with taxes included I need to find the amount of two separate taxes and the total before taxes.

Where I am the taxes are like this: $100x 5%= $105x 7.5%=$112.88.

So if my total with with taxes is say $3900, what is the amount before taxes? I used to have a simple formula for this but they changed the % of taxes and I didn't know how to modify it.

[craigsub]

Stephen ... take the total and divide it by 1.075. Then take that number and divide it by 1.05.

You now have your starting point.

3900 / 1.075 = 3627.91

3627.91 / 1.05 = 3455.15

3455.15 x 5% = 172.76

3455.15 + 172.76 = 3627.91

3627.91 x 7.5% = $272.09

$3627.91 + $272.09 = $3900

[Stereodude]

Divide the total after taxes by 1.12875 or 1.05*1.075. That will give you the before taxes price.

[django1]

Thanks guys!

[m-fine]

You pay tax on the taxes? THAT sucks!

[django1]

You pay tax on the taxes? THAT sucks!

Such are the relations between the different levels of government here. Mind you if they decide to "harmonize" the two taxes, as they are doing in other provinces, I'm sure they will take the opportunity to raise the amount to a round 13%...

[m-fine]

Why stop at lucky 13% when you can make it an even 15 or 20?

[craigsub]

If I have my Canuckia (vs Yankeestan) vernacular correct ... the 5% is the GST (federal sales tax) and the 7.5% is the PST (Provincial sales tax).

Try negotiating THAT with a stripper sometime ... :woo:

[django1]

Your vernacular is correct. I believe that in the case of strippers the taxes are included in their "services".

[woofersus]

You have to pay tax on services? Here, you can consider a stripper a private contractor, which is not taxable, unless you spend more than $500 with her in a year, in which case you have to give her a W2 and pay payrol taxes. Pretty soon we'll have to provide said stripper with health insurance....

[django1]

GST: Goods and Services Tax. It is a way to get money from those who don't pay much income tax.