On May 8, 2014 at 02:37, Daniel Tonks said...
Well, that part alone was an odd choice! Taxing a tax?
maybe, won't disagree with that and I guess the government finally decided the same thing. But in some ways there is a benefit to it
1) it is a simpler calculation (i.e. for example it is X*1.05*1.095 instead of X*1.05+X*0.95)--- for now it is not a big issue if someone knows where the 9.975 comes from, but what happens if one or both of the tax rates change
2) for the government you get to call it less (i.e. 9.5 instead of 9.975)
plus let's face it, like DJY said there are probably many examples where that happens now.