My American Brethren! Can you explain this to me?
- Thread starter XJ-0461
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The reason American stores dont including VATs is because a simple sales tax is easier to see when you actually buy something. VATs are taxes at every line of production, and would cost more. It would be like adding the sales tax to the price tag, but rounded to the next third number. Sales taxes are simply cheaper, and more effective. My advice to to just bring the money you're going to bring. Most currencies today are worth more than the dollar anyways, and you probably wont find much you're trying to got that expensive anyways, and if you do, dont buy it because its probably fake.
It's an old sales trick. The government needs cash, otherwise it can't function. It's just tax on what you buy. It's a lot more than 7 per cent though. If they put it on the price of say... something $1000 dollars, saying tax is 10% (Chicago*cough,cough*), boom, it looks like asking price is $1100, causing retailers to lose out. understand?XJ-0461 said:
California sales tax can be as high as 11% in places, and they have an income tax. Not to mention property taxes, and a federal income tax to pay as well. That's not even including hidden taxes that buisness pay for salary which could be going to the worker, medicare, L&I and unemployment insurance taxes.xxcloud417xx said:
We get taxed quite a bit here in places, we can complain if we want to.
long thread, can't be bothered to see if anyone's come across the right answer yet
The Reason why we don't have a tax added pre-sticker price in America... drumroll please...
Sales Tax is handled on the state, not national, level, unlike Europe. It might be 10% in one state, 4% in another, 6.5% somewhere else, and 8.25% yet another state.
Many different percentages of sales tax varying state by state -- and even differing things being taxed state by state. Some states tax food. Some only tax fast food. Or prepared food. Some states don't tax clothing.
With the tax always being added after the sticker price, a company can advertise and price a product at let's say $199.95 -- nationally -- and that will be the price on the shelf, nationally. Makes more sense than having it priced $200 in this state, $202 that state, $210 in another state... and yeah, make no mistake, the states are at no point ever going to willingly relinquish their sales tax in favor of a national sales tax. If there was to be a national sales tax (there won't) it would be on top of the state sales tax, leading not to uniform prices but instead simply higher prices.
The Reason why we don't have a tax added pre-sticker price in America... drumroll please...
Sales Tax is handled on the state, not national, level, unlike Europe. It might be 10% in one state, 4% in another, 6.5% somewhere else, and 8.25% yet another state.
Many different percentages of sales tax varying state by state -- and even differing things being taxed state by state. Some states tax food. Some only tax fast food. Or prepared food. Some states don't tax clothing.
With the tax always being added after the sticker price, a company can advertise and price a product at let's say $199.95 -- nationally -- and that will be the price on the shelf, nationally. Makes more sense than having it priced $200 in this state, $202 that state, $210 in another state... and yeah, make no mistake, the states are at no point ever going to willingly relinquish their sales tax in favor of a national sales tax. If there was to be a national sales tax (there won't) it would be on top of the state sales tax, leading not to uniform prices but instead simply higher prices.
My personal guess is that it is for the ease of inter-state commerce. Each state and/or region has its own set of taxes. For example New York City has different sales tax (8.875%) to that of New York State(8.00%) (its state tax + city tax).XJ-0461 said:
they never list the tax price because usually its odd like 13.63 which is annoying, and doesn't sell and object nearly as well as a price tag of 11.99 or something sounds. which speaking off sounds a lot better than 12.00. that being said some places do list the total price, but they're very hard to find, and tend not to last long for some reason. and sorry for the rambling nature
Warmonkey has the right idea I think.
The truth is though that near every country in the world has this tax usually added to the sticker price. 7% is actually very reasonable. For example EU regulations require a 15% minimum (with the exception of reduced rates for certain goods). With rates in EU countries varying from 15% to 25%.
The truth is though that near every country in the world has this tax usually added to the sticker price. 7% is actually very reasonable. For example EU regulations require a 15% minimum (with the exception of reduced rates for certain goods). With rates in EU countries varying from 15% to 25%.
- Apr 1, 2009
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it actually varies by state government, some states have sales tax, some have income tax, sales tax tends to cut more deeply into the poor and income tends to hold the rich over the fire a bit more, really it comes down to how much your state blames the poor for all its problemsRandomWords said:
Lol! I freaked the hell out when I read that without your edit; I couldn't figure out how that happened. Yes, that was a typo there and it was supposed to be 39.94. I'm not sure I really agree with you though. I would need to see some data suggesting the degree to which rounding error affects the ultimate price -- if it were small enough, VAT pricing (I think I'm talking about that correctly) would still be practical in small consumer sales. And I can tell you right now that the price being particularly high or low has much less to do with the round off error than how "round" the price is. The error in for something that's like $5079.00 would be less than than something that's like $2.38.Rubashov said:
Mathematical theory FTW!
because the store is selling it for...say $10.00. and thats that...when you buy it tho there is a tax of 7-8% depending where you are and you are being taxed when buying the object...i agree i would like to see $10.80 when buying something rather than not knowing the kxact priceXJ-0461 said:
In my State at least, the reason why they add it on at the counter instead of on the price tags is that the government mandates that the tax be shown separately from the original price of the item (To stop people from adding on extra money to an item that was labeled, in store, as a lower price and saying "oh, that's the sales tax" when questioned).
