Learning About Taxes

Having lived in Romania most of her life, Holly was oblivious to the idea of taxes. She went shopping with us and purchased things from time to time. The price tag on the shelf already included the 19% sales tax. So if the price tag said *500,000 lei, that is what you paid at the register. Now that we are in the States, Holly is learning about sales tax.

"Mom, I have my own dollar. Can I buy this notebook for 99 cents?" she asks.
"Do you also have a nickel? You have to add the sales tax to the price." I tell her.

Yesterday, Holly took a math quiz and was trying her best to make a 100. She missed one which gave her a 97. I handed it to her and her response was, "Hmmm . . .97 . . . Plus tax! I got a 100!!" I guess now I need to explain what the taxes are for.

*For anyone who is curious - 500,000 lei was about $15-18 when we lived there. Before we moved, they decided to remove 4 digits from their bills and 500,000 lei became 50 lei. Today's exchange rate would equal about$20.