What really pisses me off about mail in rebates, aside from the fact that you have to wait months to get your money back, is that you are ultimately paying a much higher sales tax for the product than the government regulates.

Example: I recently purchased a router so my two computers can share the same internet access. The router was $69.99 and Best Buy, and after two mail in rebates (which were sent to two different states) totaling $40.00, the final purchase was only $9.99. In Pennsylvania, sales tax is 6 percent, so the product should have sold for $10.59 or $0.60 in taxes. Instead, the product cost me $14.19 which is $4.20 in taxes. I am not griping over the price, but I paid 42 percent in taxes, which is obsurd.

Even with smaller items, what is really worth $20 (after a $20 mail in rebate) is costing is twice as much in taxes as it should under the tax system.

Could this be an example of how big businesses lobby with the government (or the government teaming up with big businesses) to increase tax revenue? Its a common "ill scratch your back if you scratch mine" scenario. The government benefits by receving increased tax dollars, and the retail chains receive the inflated sales price for the product (the $100 before the $80 or whatever mail in rebate)

Look at the top companies in the country ( i am sorry, i can only speak for the United States) The vast majority are service industries (retail etc) and not manufacturing (general motors) And even the "manufacturing" companies, most of them offer financial services (which are SERVICES) and in many cases (like Ford and GM) they make more money with their services as opposed to their manufacturing)

Sorry for going off in a tangent (too bad i didnt put this much effort in economics class lol) but I am real curious how much of the United States Annual Tax Revenue comes from inflated taxes due to mail in rebates. Perhaps I should contact Alan Greenspan about that answer!