My American Brethren! Can you explain this to me?

[Nomanslander]

It's kind of stupid. Why isn't it just included in the price? That would make everyone's life a load easier.

It's a tradition of laziness on the the behalf of the retailers that the whole nation excepted some 100 years ago or how ever long it's been around, I don't know....lol

 

[Jerious1154]

It's not listed on the price tags because the sales tax is determined by each state, or in some cases even each city. McDonald's doesn't want to have to advertise for a "Dollar Menu" in Delaware, a "Dollar and Seven Cent Menu" in Maryland, and a "Dollar and Nine Cent Menu" in California, so they just add the sales tax in later. This does get really annoying when you have to bring more than a dollar to order something off of the dollar menu though.

 

[icyneesan]

Like Canada its just a Tax for general services (Eg. Fixing roads, etc) Of course its only 5% in British Columbia, but now we have a new 14% tax on food and other things which people are complaining about.

It only upsets me now because instead of getting my subway for $12, it now costs me $15, which makes me just short for a video game rental. RAGE.

 

[Danzaivar]

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.

There's actually a very clear and simple reason for this. It's a type of advertising. You'll notice that in America most prices aren't 2.00, but instead 1.99. This subliminally encourages people to buy the product, even though with tax it is probably closer to 2.07. People see the one in front and are more likely to buy. Not by much, mind you, but likely enough that almost all stores in America are willing to throw away a penny on every product.

In the UK stuff is usually priced at X.99 AFTER tax. The pre-tax price is usually some really awkward figure that they only do so the final price looks better to the customer. So they ain't pricing it like that so it just looks better.

----

Personally I think it's to help encourage the American mindset of 'taxes are bad' that they're oh so keen on. If prices go up in the UK you can't tell if the shops getting greedy or the tax went up, you just assume the shops doing it. Also, you don't really notice how much of what you're paying is actually for the product. Americans however, are reminded of how high taxes are with every item they buy.

I prefer the American system to be honest. It would be awkward, but you can't argue at the figures. Average sale tax in the US - ~7%. UK sales tax - 17.5%(20% in January).

 

[Sronpop]

Now I don't know for sure, but I think this question can be answered by the Simpsons. Remember in the episode where the find out Flanders is 60 or whatever it is, and they find out because he uses a seniors card at a gas station and it reduces the tax. I think it isn't added because it can be different to different people. Like normal people pay 7% but with a seniors card etc its only 3.5% etc. That would be my rough guess.

 

[MikailCaboose]

It's also not on the label because the sales tax differs between counties. Take for example St. Johns and Putnam counties in Florida. St. Johns sales tax is .06, while Putnam county's is .07. Specifically changing a ticket for each area would take away from the company's profit, so they just don't bother. Now, I haven't had an economics course so that may be complete crap, but I think that's one of the reasons. Plus, I just don't really think about it in the first place, and is just one of the many taxes on stuff here.

 

[yoyo13rom]

Because Americans are too lazy to just put it in the price on the shelf like the English.

It's such a fucking huge ballache. I always forget that my item is gonna magically be more expensive when I get to the till. It's just another stupid American thing

Yeah, I guess that really sucks. I mean you go buy a 2$ loaf of bread(because that's all the cash you've got on you) and you suddenly realise it's 2.14$ and you can't buy it any more. After which the cashier looks funny at you for just wasting his/her time.
I don't thinks there's any country in the UN where the VAT isn't added automatically in the price tag...

 

[Amphoteric]

It doesn't happen in Britain. They just show you how much money you have to throw at them to leave a shop with something. I shop on the internet anyway.

 

[Iffat Nur]

Its VAT, Taxes, GST (as someone mentioned). Basically, we need to pay the gov'ment. Its not like they are going to go the Bangladeshi way and steal from us straight up

 

[pauloalbatross]

You mean VAT? Yh, we had that in England >>

Had? We still have it, it's just 2.5% less.

It's actually gone back up to 17.5% (since the start of this year) and in January, as part of Osbourne's budget, we'll be going up to 20% so that the government has more money to dig itself out of its economic quagmire

 

[CK76]

25% tax on almost everything in Sweden, Denmark, Norway
Exceptions for Sweden: Groceries 12%, newspapers and magazines 6%

Still feel like living here? The girls are great and to us living her it's acceptable, but how about YOU?

Are you offering? I'd pay 30% with a smile.

 

[Gmano]

It's because they often list the msrp to save money, if they changed the list price for every municipality/state along with every sale it would be crazy! Now they can just list msrp, change the sale price like that and have the register do all the tiny additions.

Other people also mentioned that looking cheaper is always a good way to lure customers.

 

[Eri]

It's kind of stupid. Why isn't it just included in the price? That would make everyone's life a load easier.

It could be because there are different tax rates in different states, and they put down the untaxed price for standardization. It might also be so that the tax on the item is properly noted, and people don't get confused about exactly how much it costs, and they know what base price they're paying before taxes. It's like with income taxes where you know how much you get paid, and then how much after taxes.

So wait....it isn't 7% in all states? This is confusing the hell out of me. you see a price, take the item to the counter, and they tell you it's actually more than they advertised? That sounds like false advertising to me. Here in the UK that gets you in a lot of trouble.

Still, no idea why they seem to think it's SUCH a ballache adding 7% to an advertised price. I mean, how stupid can you be if you think you're getting an awesome deal, only to be told you have to pay more in a few minutes?

This will answer it for you. http://en.wikipedia.org/wiki/Sales_taxes_in_the_United_States

 

[Kopikatsu]

It's sort of like the reason why America fought for independence from Britain. Then they decided to do it again anyway.

Interestingly, when they rebelled, THE COLONIES WERE ONLY PAYING 1/20TH OF THE TAXES THE PEOPLE IN GREAT BRITAIN WERE.

So basically, say they decided if you wanted to mail a letter, they would tax you an extra 10 of whatever currency was being used then. You'd be taxed .50 instead of the 10. Great job there, America!

 

[Commissar Sae]

Don't complain man, I have the provincial tax adding onto the already taxed federal tax, making my sales tax about 15%. You get used to it eventually.

 

[garfoldsomeoneelse]

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.

There's actually a very clear and simple reason for this. It's a type of advertising. You'll notice that in America most prices aren't 2.00, but instead 1.99. This subliminally encourages people to buy the product, even though with tax it is probably closer to 2.07. People see the one in front and are more likely to buy. Not by much, mind you, but likely enough that almost all stores in America are willing to throw away a penny on every product.

I only skimmed the thread, but this is definitely all the answer you'll ever need.

 

[ProfessorLayton]

Taxes are for the government... it's because people are willing to pay a little extra with every transaction, but less likely to pay $1,000 every year. And they also don't put the full price for the same reason people put $19.99 instead of $20. It makes it look like you're only paying $19 but truth is you end up paying around $22 (where I live, at least. In Tennessee tax is 9.75%). There are some places that do include tax, though.

 

[Sougo]

Lucky Americans. They charge us 13% here in Canada.

Its always so scary at the cashier. I can just feel my money washing away every time I swipe my card.

 

[zehydra]

It's a state-run thing. Look up different states' sales tax before, say black friday.