Why is tax charged BEFORE adjustment for gift card?

Without more information, this sounds like the old canard about getting a raise and paying more in taxes than the raise was.

Op is that stupid. The gist card is a credit, not a price reduction. I bet you also think deflation is a good thing—

Why do people ask questions like this without specifying where they're located? Every state that has sales tax, and every locality that adds on additional sales tax, has different rules.

R3 the second dumbest guy around, after Op.

Are you under the mistaken impression that taxes were paid on the purchase of the gift card so shouldn't be paid (again) when used? There are not taxes paid on gift card purchases.