I intitiated the term here on the boards in jabbing Dave about overpaying (like a lot of us) for his business. Generally the term is reserved for those situations where you have paid or have to pay a premium for doing something foolish, or blantantly missing doing rasonable due diligence or having a general bubble of rationality.
The sales tax gaffe is definitely a laugher, but unless it ended up you paying way above what a normal, rational, alert adult would have paid . . . not a clear cut “fool tax” as much as paying huge money for a pizzas hop taking the word of the seller for his sales and financials . . . then finding out 3 months after opening that you’re in the weeds becasue sales are 25% lower, equipment is breaking down, and the staff is all dope addicts now in jail.
The difference between a market rate for the actual, real value of the business and what you ended up paying for it.