Why does fixed Discount change taxes?

[bacomputer]

Fixed Discount also reduces taxes.

@SquareSupport

@SquareDevelopers

In the pictured scenario, the only item to be taxed is the keyboard.  When I "customize" each of the three items, I check to be sure taxes are off on the 1st, and 3rd, and that only the 2nd item has taxes turned on.   When I attempt to discount the $40 labor, it changes the total taxes as well.   This is believed to be a bug.  It may make sense to apply a % discount to all items, but applying a fixed $ amount to all items is plain wrong. Taxes on $20 keyboard @.0825% is 1.65

[JJ_]

Hello @bacomputer 👋

At this time Dollar Amount discounts affect the sale total and are not item specific. This means that they are affecting the gross amount and by consequence reducing the Total of the sale and the taxes.

To reduce amount of a specific item you would have apply a % discount at this time. 

[bacomputer]

Thank you Jj.   In some cases I've had trouble if I want to discount entire amount of item (100%) because you forbid $0 amount.   Those artificial restrictions should be removed in app and on web dashboard, except of course I understand minimum 1$ total for credit card charge.

[JJ_]

This would be considered a feature request at this time, @bacomputer! I would like to also invite you to our Beta Community to find out more about upcoming products and services.

[bacomputer]

@JJ_, Do see your statement, "This means that they are affecting the gross amount and by consequence reducing the Total of the sale and the taxes."    means wrongly calculated?

Item A non taxable $10

Item B non taxable $10

Item C taxable  $10

Subtotal $30

Taxable subtotal $10

Tax Due $10 x taxrate ~~ .80

Total Due  30.80

Now add Discount, $10

Subtotal $20

Taxable subtotal STILL $10

Tax Due STILL   .80

Total Due 20.80

What Square Calculates:

Discount $10

Subtotal $20

Taxable subtotal ---well that is difficult, because evidently you take 1/3 off each of the 3 items and thus tax item C at a value of $10/3 or about $3.33; thus 1/3 tax or about .27

Total Due 20.27   WRONG. 

THERE IS NO "FEATURE" REQUEST IN THIS.  THIS IS WRONG CALCULATION.  ONE SHOULD NEVER REDUCE THE TAX ON A TAXABLE ITEM.