Path: utzoo!mnetor!perle!dave
From: dave@perle.UUCP (Dave LeReverend)
Newsgroups: ont.general
Subject: Phone Taxes
Keywords: phones, taxes, mind-boggling
Message-ID: <400@perle.UUCP>
Date: 21 Nov 88 14:42:52 GMT
Reply-To: dave@perle.UUCP (Dave LeReverend)
Distribution: ont
Organization: Perle Systems Limited  Scarborough, Ontario, Canada
Lines: 39

Has anyone out there had trouble figuring out the tax on long-distance
phone calls?

I've got two room-mates, and it's hard enough determining who called 
where.  Now, we've got to figure out two different tax rates on those
calls.  And (can you believe it?) we've got to pay TAX on the TAX!

After much haggling and a call to Ma Bell, here's the solution:


Let "x" be the "chargeable messages"

Federal tax = 10% of "chargeable messages"  

		or

	F = (0.1)x

Provincial tax = 8% of (chargeable messages plus Federal tax)

		or

	P = 0.08(x + F) = 0.08(x + 0.1x) = [0.08 + (0.08)(0.1)]x
	  = (0.08 + 0.008)x = (0.088)x

Total tax = Federal Tax plus Provincial Tax

		or

	T = F + P = (0.1)x + (0.088)x = (0.1 + 0.088)x
	  = (0.188)x

The bottom line (literally) is that you pay 18.8% tax on long-distance calls.

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"I found all of this very taxing."

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