From USA TODAY:
Sales taxes last year took the smallest percentage of consumers’ dollars since 1967 as tax-free Internet sales and untaxed services continued to erode state and local governments’ top source of revenue, a USA TODAY analysis finds…
Americans paid an average 4.27% sales tax rate on purchases in 2011, down from 4.63% five years ago and far below the peak of 5.18% in 1973, according to an analysis of Bureau of Economic Analysis data.
The Internet isn’t the biggest reason for the sales tax decline. The primary cause is a long-term shift to buying tax-exempt services rather than taxable goods. Americans today spend more money than ever on medical care, college tuition, health clubs, pet grooming, house cleaning and other services that are rarely covered by the sales tax…
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