I think the states have to provide a certain amount of money to the government and each state chooses different ways to do this. States with no sales tax usually have higher land tax and etc..XJ-0461 said:The whole "sales tax" thing. When buying stuff, it says one price when you see it on the self, right? But then when you take it to the cashier, it adds like 7% of the price to whatever you're buying, yeah? How does that make sense? My reasoning for asking this is that I'm going to Hollywood for a holiday next year, and I don't want to get caught out when I try to buy something.
So I'm asking any Americans reading this, why do shops in your country do that? Is there some legal reason why it happens? Do all shops do that over there? And for other people not from America, does this happen in your counrty, or does it make any sense to you? It's something I can't get my head around on my own.
EDIT: To clarify, what I'm basically asking is why can't American shops include VAT (or thier equivalent) in their prices?
Yeah it wouldAby_Z said:Taxes. There's a little bit added to the cost of everything. Yeah, it'd probably make more sense if they just included tax into the full price you see, but then that'd require a little more math.
8.25 is the general rule of thumb (we had an increase somewhat recently), but it varies from place to place, which is exactly the reason they don't just include the tax in all the labels. I mean, the U.S. is REALLY FUCKING BIG, so printing different labels for each area with different tax rates would be a huge pain in the ass for big national companies.Agayek said:XJ-0461 said:-snip-
PS - In California, the sales tax is 9.5% last I heard.
Value Added Tax is 17.5%, it's not added to everything and it's included in the price of the item.Palademon said:You mean VAT? Yh, we had that in England >>
Well shit, sales tax is 6% here in Michigan. For the first time I can say I'm glad I don't live in England.Phoenixlight said:Value Added Tax is 17.5%, it's not added to everything and it's included in the price of the item.Palademon said:You mean VAT? Yh, we had that in England >>
because the total sale is what is taxed a certain percentage, not each item. does that make sense?XJ-0461 said:EDIT: To clarify, what I'm basically asking is why can't American shops include VAT (or thier equivalent) in their prices?