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Sales tax token AI simulator
(@Sales tax token_simulator)
Hub AI
Sales tax token AI simulator
(@Sales tax token_simulator)
Sales tax token
Sales tax tokens are fractional cent devices that were used to pay sales tax on very small purchases in many American states during the years of the Great Depression. They were created as a means for consumers to avoid being "overcharged" by having to pay a full penny tax on purchases of 5 or 10 cents. Issued by private firms, by municipalities, and by twelve state governments, sales tax tokens were generally issued in multiples of 1 mill (1⁄10 cent).
Prior to the coming of World War I in the summer of 1914, only two countries, Mexico and the Philippines, made use of a general sales tax for national finance. Excise tax — a transaction tax on the sale of specific items — was broadly used, however, and the idea of a general sales tax was neither unknown nor obscure to political decision-makers in the United States.
Indeed, in 1921 there was a concerted effort to implement a 1% national sales tax in the USA by attaching it to the 1921 national revenue bill and 1922 legislation providing for a soldiers' bonus. Although the proposals for a national sales tax were defeated by an alliance of farmer and labor interests, the state of West Virginia implemented a 1% sales tax of its own in that same year, using the revenue so generated as a replacement for a corporate income tax. Improving economic conditions throughout that decade of the 1920s would leave West Virginia's use of a sales tax unique among the 48 American states.
In October 1929 the global economic crisis struck the United States. As unemployment skyrocketed, income tax revenue plummeted and defaults on property taxes spiked. Meanwhile, calls for state spending on relief measures for the indigent and the unemployed expanded beyond the states' capabilities. Georgia's early adoption of a sales tax in 1929 was followed by a wave of sales tax adoptions, spurred on by the deep financial crisis. In 1933, 11 more states, including New York, Illinois, California, and Michigan, adopted sales taxes.
The twelve states that issued these sales tax tokens were Alabama, Arizona, Colorado, Illinois, Kansas, Louisiana, Mississippi, Missouri, New Mexico, Oklahoma, Utah, and Washington.
In addition to the fractional cent tokens used elsewhere, a closely related system of state-issued paper sales tax stamps and punch cards was used in the state of Ohio.
Sales tax tokens were generally regarded as a nuisance by consumers and were replaced in fairly short order by the bracket system of sales tax collection, which averaged out the tax on small sales. By the end of the 1930s token use was eliminated in most of the issuing states, with sales tax tokens lingering in Missouri until late in the 1940s.[citation needed]
Tax tokens were issued in a variety of materials, including cardboard, brass, bronze, aluminum, pressed cotton fiber, and plastic. The number of types issued is counted in the hundreds, with mintages of some of these types ranging upwards into the tens of millions. Consequently, tax tokens are regarded by numismatists as ubiquitous and often are of comparatively little value. On the other hand, certain types and varieties are extremely rare, with as few as one specimen known.[citation needed]
Sales tax token
Sales tax tokens are fractional cent devices that were used to pay sales tax on very small purchases in many American states during the years of the Great Depression. They were created as a means for consumers to avoid being "overcharged" by having to pay a full penny tax on purchases of 5 or 10 cents. Issued by private firms, by municipalities, and by twelve state governments, sales tax tokens were generally issued in multiples of 1 mill (1⁄10 cent).
Prior to the coming of World War I in the summer of 1914, only two countries, Mexico and the Philippines, made use of a general sales tax for national finance. Excise tax — a transaction tax on the sale of specific items — was broadly used, however, and the idea of a general sales tax was neither unknown nor obscure to political decision-makers in the United States.
Indeed, in 1921 there was a concerted effort to implement a 1% national sales tax in the USA by attaching it to the 1921 national revenue bill and 1922 legislation providing for a soldiers' bonus. Although the proposals for a national sales tax were defeated by an alliance of farmer and labor interests, the state of West Virginia implemented a 1% sales tax of its own in that same year, using the revenue so generated as a replacement for a corporate income tax. Improving economic conditions throughout that decade of the 1920s would leave West Virginia's use of a sales tax unique among the 48 American states.
In October 1929 the global economic crisis struck the United States. As unemployment skyrocketed, income tax revenue plummeted and defaults on property taxes spiked. Meanwhile, calls for state spending on relief measures for the indigent and the unemployed expanded beyond the states' capabilities. Georgia's early adoption of a sales tax in 1929 was followed by a wave of sales tax adoptions, spurred on by the deep financial crisis. In 1933, 11 more states, including New York, Illinois, California, and Michigan, adopted sales taxes.
The twelve states that issued these sales tax tokens were Alabama, Arizona, Colorado, Illinois, Kansas, Louisiana, Mississippi, Missouri, New Mexico, Oklahoma, Utah, and Washington.
In addition to the fractional cent tokens used elsewhere, a closely related system of state-issued paper sales tax stamps and punch cards was used in the state of Ohio.
Sales tax tokens were generally regarded as a nuisance by consumers and were replaced in fairly short order by the bracket system of sales tax collection, which averaged out the tax on small sales. By the end of the 1930s token use was eliminated in most of the issuing states, with sales tax tokens lingering in Missouri until late in the 1940s.[citation needed]
Tax tokens were issued in a variety of materials, including cardboard, brass, bronze, aluminum, pressed cotton fiber, and plastic. The number of types issued is counted in the hundreds, with mintages of some of these types ranging upwards into the tens of millions. Consequently, tax tokens are regarded by numismatists as ubiquitous and often are of comparatively little value. On the other hand, certain types and varieties are extremely rare, with as few as one specimen known.[citation needed]
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