What Is a Sandwich?

The British are asking if strawberries and cream on two slices of bread can be called a sandwich.

Clarifying sandwich classification, the Cube Rule tells us that there are nine categories for foods with “starch.” Where a food belongs depends on where the “starch” is placed. If it is just under the food, then it’s “toast.” On the top and the bottom? A sandwich. On the right, left, and bottom? A taco.

You can judge the Cube Rule:

Determining the tax that diners pay, the Cube Rule could matter.

Sandwich Taxes

The UK

Combining whipped cream, strawberries, and sweetened bread, Marks & Spencer has a new limited edition treat. They say it was inspired by the “viral Japanese fruit sando”. Also, it could echo a tradition of fruit sandwiches made with bananas or jam. The question though is whether it really is a sandwich, or as a sweet delight, is it a dessert? As a dessert, the tax is 20%, while sandwich buyers pay no levy.

Somewhat similarly, in the UK, during 2012, they had the pasty debate. The pasty looks like meat in a pastry pouch, high in fat, maybe more than 500 calories, a take-out handheld basic. Noting that pasties cool before people buy them, regulators had to decide if they were subject to the 20% hot take-out sales tax. Categorized as a takeout meal, a freshly cooked hot item is taxed but freshly baked bread is not.

The U.S.

Meanwhile, affecting what stores in a mall could sell, an Indiana judge proclaimed that a taco was a “Mexican-style sandwich.” Equally random, in New York State, a sandwich can be, “as simple as a buttered bagel or roll, or as elaborate as a six-foot, toasted submarine sandwich…” When you separately buy some bologna, cheese, and bread, these items are not taxable. But if they are combined as the sandwich that you purchase, then you pay a tax. Similarly, in a New York State deli, if you order an uncut bagel and a side of cream cheese there is no tax. But if the cream cheese is on the bagel, it is a sandwich and taxable.

Our Bottom Line: Types of Taxes

When legislators levy a tax, the results could be regressive, progressive or proportional. Sales taxes are usually regressive because, as one amount, they take a higher per cent of the earnings from those who earn less than those who earn more. By contrast, progressive taxes, like the U.S. income tax, take a higher percent of the income of more affluent households. Then, the last alternative is a proportional tax, like Medicare, that takes the same proportion from everyone.

Indeed, whether it’s pasties, fruit sandwiches, or bagels, we see food but our politicians see revenue. But then, the decisions begin.

My sources and more: Thanks to Marginal Revolution for inspiring today’s tax post. From there, this BBC article came in handy. In addition, and with a big smile, from a past post, I learned about the Cube Rule from my Hustle newsletter and then found an update at wikiHow. But perhaps most crucially, you can see from this (fascinating) NYC tax website that a taco is NOT a sandwich.

Please note that today we quoted parts of a past econlife post.