Watching a documentary, there was aremark from the journalist on how, due to how wildly taxation on goods may vary, from area to area, in the US, most retailers do not put the full prices on the shelves and instead just tally it at checkout.

This made no sense to me, a european, as when I go to any regular shop, prices already include all taxes applicable to the product.

There are specialty stores where VAT and other taxes may not be applied on the price on the shelf but those are usually wholesellers, selling for professionals, that already know what additional taxes will be added and at which rates, at checkout.

Not having the full price you'll be paying, on display, seems very underhanded and a bad practice. The client should know how much they are going to pay from the moment they pick an item.

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[–] 1 point 1 year ago

Usually no. Taxes are different depending on where you buy. We expect there to be 5 to 9% added on at checkout.

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  • [–] 76 points 1 year ago (23 children)

    The whole argument of "it's cause there's so much variation in tax amount" never really made sense to me as an excuse. Like.. you'd print the labels at the store wouldn't you? So you just put the tax amount in the system for that store and print it.. the only way it makes sense is if for some reason you're shipping price tags across the country

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  • [–] 1 point 1 year ago

    you'd print the labels at the store wouldn't you?

    No.

    At least the large corporations I've worked at, no.

    Price updates were printed at HQ or local distro center and shipped with the weekly shipment. Sale stickers and new isles/planograms too.

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  • [–] 22 points 1 year ago* (last edited 1 year ago)

    There are often nation-wide or region-wide advertising campaigns that proudly display a price. If individual cities have different sales taxes, that would make it hard. Personally, I still don't find this to be a good reason. Just charge a single amount anyway and eat the costs in the high tax area. Price it in.

    Edit: now that I'm thinking about it, many chain businesses are franchised. So each McDonald's (for example) is independently owned. So they couldn't just eat the cost in those areas.

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  • [–] 7 points 1 year ago* (19 children)

    Sales tax varies city by city, which means a business cannot have a central distribution center where price tagging occurs, nor could they move inventory (something that happens in retail quite often) - substantially shifting the burden onto businesses. For better or worse, I'm sure that's how the price tagging discussion went...

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  • [–] 17 points 1 year ago (5 children)

    All of that is nonsense.

    I worked for 2 corporate retail chains that would send the stores the price labels for sales and we would print out a file for other tags.

    In a quarter, most labels would be replaced and they would send irregular price changes every week. We would spend probably 10 man-hours a week taking down and putting up labels under typical operations.

    Items don't generally move far or often, except for rotating display spaces at the ends of aisles for promotional items where every tag changes. Every few years they might make radical changes to item placements, but they tend not to because it confuses customers.

    There is no reason to exclude the tax in the price labels except for tradition and/or concealing how much you will actually pay with the tax added. Most people know what the taxes are in the area they shop and will just round up to the next dollar or add 10% if they are on a budget.

    Bring on wireless electronic price tags that show the price including tax.

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  • [–] 2 points 1 year ago (3 children)

    wireless electronic price tags

    I'd rather not... They already use these to implement dynamic pricing based on stock levels, best before dates, etc. Only a matter of time before they feed surveillance camera data to the system to take the appearances of nearby customers into account. (I wonder if it's already a thing in those no-register stores in the States? They can probably also pull in your shopping history, search history, etc?)

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  • [–] 1 point 1 year ago (2 children)

    Why would they take appearance into consideration when they can detect your phone and know exactly what your income level is and your purchasing habits?

    Would you support an individualized pricing system if it meant that disadvantaged individuals could afford a better quality of life that is subsidized by charging wealthy people more?

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  • [–] 1 point 1 year ago* (1 child)

    Would you support an individualized pricing system if it meant that disadvantaged individuals could afford a better quality of life that is subsidized by charging wealthy people more?

    You're not from around here, are you, pardner?

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  • [–] 12 points 1 year ago (7 children)

    I've not worked in retail in over 2 decades, we printed all the price labels at the store back then and we have a universal VAT rate across the country meaning they could have done it centrally. I don't think the UK is over 30 years more technologically advanced than the US making that impossible.

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  • [–] 2 points 1 year ago (6 children)

    I don't think the retailers are saying they can't price at the store-level. They are saying it is inefficient and burdensome - particularly as inventory moves (and would need to be recalculated and retagged). Anywho, it's something you get used to, even if it is a weird way to operate.

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  • [–] 9 points 1 year ago (5 children)

    Inventory can move store to store but the price tag remains on the shelf at the store, so this argument doesn't really make sense to me.

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  • [–] 0 points 1 year ago* (3 children)

    Many/most put the tag right on the item not the shelf. Thats for groceries only. And even here a lot.

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  • [–] 6 points 1 year ago (2 children)

    I only see that at independent corner stores here. If we're talking inefficiency, having to label every single product on the shelf is peak inefficiency.

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  • [–] 1 point 1 year ago (1 child)

    One label for 10s of products is less efficient than separate labels for every product. Explain exactly how that works. This is what Walmart, target, kroger, aldis, and every other major chain that actually has to deal with logistics does.

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  • [–] [S] 15 points 1 year ago (4 children)

    Meanwhile, electronic price tags have been introduced in the market.

    It's these small e-ink devices that are tethered to a central input station in the backroom, where a person inputs prices.

    I've seen tags change in front of my eyes, updating price, adding promotional info or changing the product available on shelf.

    Inventory movements are not an excuse, I'd say. Regardless the end sale price, if a product is not sold, it is just inventory, which value is fixed for the company.

    Lidl moves tons of non perishable inventory from central wharehouses to stores, daily, and they could not care what the end price was at the store. A given item may cost an X amount in a given season, disappear for a couple of months, then return to the shelves with a different price. The inventory value does not oscilate.

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  • [–] 10 points 1 year ago (1 child)

    I've seen tags change in front of my eyes,

    I don't understand how that's better in any way? If customers should know how much an item costs, the cost shouldn't change during store hours at all.

    In the US, we're using those tags to implement surge pricing. Even if we included tax on the tag, you still don't know how much it costs until you check out, because these tags let companies change the price at will.

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  • [–] [S] 9 points 1 year ago

    I've seen a tag change price but that price would only take effect the next day, as the store would be having a promotion on peaches. I simply asked for a clarification and the tag was rolled back.

    On the day price changes are only done to clear perishables that otherwise will end in the trash, like fresh pastries or bread. And such changes can only take effect near to the closing hours of the store. Price variations throughout the day is a crime and stores have been heavily fined for it.

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  • [–] 41 points 1 year ago (8 children)

    The average American does not include taxes in prices. This is also true in Canada.

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  • [–] [S] 25 points 1 year ago (7 children)
  • [–] 18 points 1 year ago (2 children)

    It's inconvenient for sure. Sales tax varies so much accross North America that I guess it's easier for them to advertise that way vs. custom signs for each province/state.

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  • [–] 5 points 1 year ago

    I would fully accept a law that allowed companies to advertise nationally the pre-tax price with a small disclaimer saying applicable taxes vary by location, and then require the in store price tags to reflect all taxes.

    There's no excuse not to anymore. Yes it does vary, and a computer can easily adjust the price.

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  • [–] 35 points 1 year ago (3 children)

    I generally assume what I'm buying will cost 10% to 20% more from taxes and/or tips getting added at checkout. I agree it doesnt make sense and seems underhanded, they could post the actual prices if they wanted to.

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  • [–] 13 points 1 year ago (2 children)

    As someone not used to it, I find it very annoying. Where I live the final sale price/cost to consumers is what must be advertised, by law. I remember car dealers attempted to omit delivery cost, a good while back, but that shit was shut down quick.

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  • [–] 15 points 1 year ago

    We just think about the base price, but the taxes. Then at checkout you're told "oh, that number you had in your head? Add 5-20% more as a surprise"

    It's a terrible system, very anti consumer. You never get used to it

    Oh, and it also has the fun side effect of making sure nothing ends on a dollar amount

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  • [–] 12 points 1 year ago*

    As someone who lives in one of the states without sales tax, i used to hate it because nothing would ever be exact change, id see a candy bar listed for $1 but actually ifa 1.05 or aomething and now Ive gotta deal with a bunch of coins. Arizona iced tea for 99c... Nah bro you still need aother 12 cents (gotta pay the bottle deposit too)

    Its not as annoying now that i pay for most stuff with a card, but in still resent all the other states that force people to do math.

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  • [–] 11 points 1 year ago

    Whether or not I factor in tax is entirely dependent on the size of the purchase I'm making. For the vast majority of purchases I make on a daily basis, I don't think about it at all. 7% of $2.99 is negligible to me. However, if I'm making a large purchase, or if it's a purchase which I know is subject to additional taxes beyond the sales tax, then I might consider it. 7% of $2.99 may be negligible, but 7% of $29,999 is a significant amount all by its lonesome.

    For most people, I'd imagine this is most common when it comes to purchasing vehicles, as those tend to carry large prices and special taxes which results in a significant increase in price. For example, I purchased a new vehicle a couple years ago for MSRP, but wound up paying several thousand dollars more than that due to various taxes and the registration fees. I didn't know exactly how much those surcharges would be (though I easily could have calculated them by visiting my state's Department of Motor Vehicles website and plugging a figure or two into their calculator) but I had a ball park idea which I could budget around. Also, I'm pretty sure the dealership I bought from provided an estimated total purchase price which included the fees for the locality it was located in. Unfortunately, most of that was irrelevant to me, as I had traveled from another state to purchase this vehicle, which illustrates the minor frustrations that an all-inclusive price tag would introduce in America.

    Like, I don't think you're wrong for thinking it's odd, and yes, there are ways to fix it, but it's just such a non-issue (not to mention America's "touchy" relationship with taxation meaning these attempts to "fix" things would rapidly become politicized) that no one cares to do anything about it. As someone else said, we intuitively learn what the rough tax rate will be for our common purchases and just factor that in.

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  • [–] 9 points 1 year ago

    people usually just say the pre tax price and everyone already knows the sales tax. Sometimes people say the total, but that’s usually for smaller items. For example:

    A sandwich from a deli costs like $11 total and that’s what they’d say.

    A video game costs 59.99 and people would say it’s $60, but everyone knows it’ll really be like $66.

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  • [–] 8 points 1 year ago (1 child)

    Usually people talk about the pre tax cost.

    I have a tinfoil hat theory that the taxes are kept like that to give people a recurring, low grade, anti-tax sentiment. There are a lot of crazy idiots that don't want government to exist here, so by making people feel bad about paying taxes (instead of obscuring that by baking it into the listed price) they can win sympathy.

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  • [–] 8 points 1 year ago (16 children)

    I think in pretax numbers and just expect the final price to be higher - how much higher I have no idea because not everything is taxed. It was a major pain in the ass when I only had cash cus I never knew how much to take with me. Now I only use credit cards so it’s much better.

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  • [–] [S] 7 points 1 year ago (15 children)

    I think that builds into the credit card trap.

    You should not need to guess-timate how much you're going to spend, that is the issue.

    If you want to pay in cash, that's it. Pick up the items, add it in your head, that's it. Witholding how much you are really going to spend by not applying all charges holds you hostage.

    Yes, you can just put it to your card and pay it later but why?

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  • [–] 4 points 1 year ago (10 children)

    It may help, but credit cards aren't the reason.

    Sales tax is something that can be charged at all levels of government, including individual cities in some states. It is easier to advertise one pre-tax price than deal with the variance of advertising post-tax prices.

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  • [–] [S] 5 points 1 year ago* (last edited 1 year ago) (9 children)

    And I keep thinking my country's tax system is weird.

    No way! That is ridiculous. That is essentially equating to create tax havens inside your own country. What is stopping people from high taxation states to just go for a shopping spree on a non-taxation one? Or even a city or town? Nothing. It makes no sense.

    My country has a mainland and two autonomous regions. All taxation is designed centrally. VAT, special taxes, income, private and corporate, vehicles, land, house, etc, everything is established centrally. The autonomous regions do have the freedom to fine tune the end % of tax but really nothing else. They can't exempt a tax, just because.

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  • [–] 5 points 1 year ago (8 children)

    shopping spree on a non-taxation one

    You have discovered Delaware.

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  • [–] [S] 3 points 1 year ago (7 children)
  • [–] 4 points 1 year ago (6 children)

    It gets worse.

    A lot of incorporation law is done at the state level, so most corporations are incorporated in Delaware where there are no corporate taxes and specialized corporate law courts.

    A lot of credit and gift cards are out of South Dakota because that state has favorable credit card and gift card laws.

    A lot of the laws of the country are written at the state level by design.

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  • [–] [S] 1 point 1 year ago (5 children)

    That is an entire level of idiocy and corruption by itself.

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  • [–] 1 point 1 year ago (4 children)

    I imagine that these kinds of issues come up a lot in other federal systems. Not all decisions are made at the national level, with significant decisions made at the local or state level. Hell, a lot of federal agencies' jobs is to be a resource for states, in both budget and technical expertise.

    States in the United States have a lot of the competencies that nations in the EU do, including state run militaries. It is just usually hard for a lot of non-Americans to understand how much power is given away.

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  • [–] [S] 2 points 1 year ago (3 children)

    Tax harmonization is an ongoing struggle.

    The Nederlands and Ireland have extremely low taxation rates for companies, which is causing many companies to move to these countries and effectively undercutting their country of origin. And now that I think about it, Luxembourg has the same issue.

    But completely waving taxation is not legal, at any level.

    I'm aware the american states could be considered countries. Unfortunately, the US being a somewhat more homogeneous country at its inception, never took the opportunity to create a good legal super structure. The end result is the conflicting federal and state level.

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  • [–] 1 point 1 year ago (2 children)

    Unfortunately, the US being a somewhat more homogeneous country at its inception

    It was never a homogeneous country at its inception. The colonies were considered to be internally sovereign and the initial federal government was little more than a mutual defense fact, a joint military, and customs union.

    Hell, the Continental Congress which conducted the war consisted of representatives of the various colonial legislatures.

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  • [–] [S] 2 points 1 year ago (1 child)

    Regardless. It had a better chance to it. And nowadays a bunch of countries with wildly varying cultures, completely different languages and a lot of unsolved baggage is doing it better.

    If it was to be another group of independent nations, fine. But the moment federation is considered and considering the duress it had to take from the start, against a common enemy, true, organized union would be easier and simpler.

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  • [–] 1 point 1 year ago

    It is important to keep in mind that corporations, at that time the Constitution was written, usually required a law to be passed for each corporation. There is also some federal regulation due to the interstate commerce clause.

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  • [–] 0 points 1 year ago (3 children)

    I use credit cards cus I get cash back and it’s also how I manage my budget - each major category has its own credit card so I can easily see how much I spend on each category per month and per year.

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  • [–] [S] 3 points 1 year ago (2 children)

    No amount of cashback is enough to convince me to sign up to one.

    Well... maybe 100%.

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  • [–] 2 points 1 year ago (1 child)

    Eh, I mean they're designed to be as predatory as possible but if you do math and treat it as a debit you literally just get free money back.

    Also you need a credit history here as no credit is treated as the same (if not worst) than bad credit and the only other options for establishing one is taking out loans.

    If you're okay never being able to finance a vehicle or house though, then no credit history is fine as long as you can provide full cash for those purchases up front.

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  • [–] 14 points 1 year ago (12 children)

    When you say "people" you're really talking about the stores, right? The stores just put the price they charge, not the taxes which they don't get. Yes, taxes vary from state to state, but it's not like we're all going to different states every day. I know what the tax rate is in my area, and so I know to add that when I see a price in a store.

    If you really mean "people" as in customers, it depends. If I'm telling someone that a store has a good price, I'll just quote the store's price. But sometimes when I'm talking about what I paid, I'll include everything "Wow, I can't believe this cart of groceries was $150..."

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  • [–] 6 points 1 year ago* (4 children)

    Why do consumers accept a system like this? Wouldn’t it be just better for consumers if the shop pricetag represented the exact amount you have to pay at the counter?

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  • [–] 4 points 1 year ago (3 children)

    Sure, sounds nice. But is it bad enough that people feel compelled to create a ballot measure and get it changed? Apparently not.

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  • [–] 5 points 1 year ago (2 children)

    Yeah apparently so. I guess it’s not the top of mind problem Americans have right now.

    Over here various pro-consumer watchdog organisations would protest wildly and the merchant would most likely get fined for false advertising. So the whole thing feels a bit alien to me.

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  • [–] 10 points 1 year ago (4 children)

    It would require zero effort for the stores to post the actual prices. This is just another example of Capitalism Stockholm Syndrome that's displayed by so many Americans. This practice is dishonest and serves no other purpose but to deceive the consumer.

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  • [–] 7 points 1 year ago (2 children)

    It's certainly for the store's benefit, not the consumer's, but you're over stating things. Sure, there's no incentive for the store too post anything other than the price they charge, and not the state and federal charges the government layers on top of that. There's no law requiring them to do so, and obviously they'd rather post the smaller price. We could change that by making it a law, but no one really seems to care that much - just doesn't seem like that big of a deal.

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  • [–] 4 points 1 year ago (1 child)

    Counterpoint to this is gas stations and the fact that they include taxes in the price on the giant sign by the road. Why should retail be any different?

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  • [–] 0 points 1 year ago (1 child)

    Only an American would assume that when someone says people they mean companies instead of, you know, people. πŸ€¦β€β™‚οΈ

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  • [–] 1 point 1 year ago

    I assumed that because of his wording. People I know don't really "name prices," businesses do. My guess was that it was the businesses that he meant, and since it was responses about businesses that he replied to, I think I was right. But, in case, I answered for regular people, too. Don't know why you have to be shitty about it.

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  • [–] 7 points 1 year ago

    I did "tax included" when I sold stuff but it's unusual. Yes we know there is tax, I know the tax rate here and it's not difficult to calculate the total. Food, like groceries, is not taxable here.

    I will say though - my husband wants a car and I keep having to remind him to gross up the price when he sends examples because on big things it is a big charge.

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  • [–] 7 points 1 year ago (1 child)

    We did a trip to the US that covered coast to coast by plane and then 5000k of driving back to the centre... And their pretend pricing sucked.

    Every state we went to advertised a price, but what you actually paid varied by heaps.

    Bought some clothes that were something like $700USD by the tag, and had $1000USD on hand... Which wasn't enough once they rang it up! Wtf?

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  • [–] 6 points 1 year ago* (2 children)

    We don't include the tax. You just expect what you pay at the till to be some percent more than the sum of shelf prices. It's a known number, 5% where I live except on a few untaxed items (which I should mention isn't the US, just nearby).

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  • [–] 1 point 1 year ago (1 child)

    Who could have guessed u/CanadaPlus wasn’t American!

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  • [–] 1 point 1 year ago* (last edited 1 year ago)

    I mean, if you read my username it should be obvious. And it comes up often enough it was worth putting it in the username. It's just that not everybody does. and I'm going against OPs expectations by answering.

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  • [–] 5 points 1 year ago (5 children)

    A lot of convenience stores around me don't even have any prices shown on many items. Drives me crazy, but I guess many people are used to it? Sales tax is usually around 7% in most places I've been to, so if I know the price of an item, I know, roughly, what to expect.

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  • [–] [S] 7 points 1 year ago (3 children)

    No prices? Things are getting worse.

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  • [–] 1 point 1 year ago* (last edited 1 year ago) (2 children)

    Yeah, that's crazy to me too. Never happens in Canada my area, unless somebody messed up when shelving things.

    I think that would actually be illegal here, since price advertising is very regulated. For example, you must be given the price displayed even if it's an error.

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  • I've seen people discussing a cellphone offer that's like "$800 but you get $800 of bill credits over 24 months" and they would say it's a free phone. But you'd pay $800 plus tax up front and you'd not get that tax back.

    Still a good deal, but it showed how many people were blind to the tax.

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  • [–] 4 points 1 year ago

    Ignore it.

    Sometimes I am like egh, that’s annoying and more than I expected and then carry on with buying whatever it is. But that is a more recent thing, now that am being more frugal. For like a decade I would say I never acknowledged it or thought about it.

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  • [–] 4 points 1 year ago

    As far as I can tell, once the question about price is asked, they will make a remark about how awful the Republicans or Democrats are (depending on their leanings).

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  • [–] 7 points 1 year ago* (last edited 1 year ago) (5 children)

    Taxes aren't on the price tag, but I figure them in as I am buying stuff. Tip too if it is at a restaurant or other tip-able service.

    Edit: it does provide some transparency into where your money is going (are taxes high or is the store gauging you).

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  • [–] [S] 5 points 1 year ago* (last edited 1 year ago) (4 children)

    Tip is of no concern here. It's a gratuity that may be given, outside the check, to the server.

    The tax rates have to be declared on the product label. VAT is 23%, 13% or 6%, depending on the nature of the product. Basic food items and basic necessities, like baby diapers, are 6%. 13% is usually reserved fro restaurants and everything else goes into the higher rate.

    Fuels, tobacco and so called luxury items have other taxes added to it, which are declared in the receipt.

    It isn't an opaque practice.

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  • [–] 1 point 1 year ago (3 children)

    Those items you mentioned are taxes at the state or federal level so there are only 51 different tax rates to keep track of. Sales tax can vary from city to city as some municipalities have an additional sales tax.

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  • [–] [S] 1 point 1 year ago (2 children)

    I risk computers can deal with the brunt of the work, if will to do so exists.

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  • [–] 1 point 1 year ago (1 child)

    That work is already done by computers (the cash registers at the local store). For what you're are suggesting, the added workload would very much be manual human work to physically change the price tags on every item whenever the local, county, or state tax rates change.

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  • [–] [S] 1 point 1 year ago

    Electronic, e-ink, price tags.

    Centrally linked to a shop back office workstation. You can turn the entire shop upside down twice a week and the actual work to change the tags would be negligible.

    And for what it matters, lets assume a very large nation wide chain, like Target. The stock leaves their supply wharehouses unmarked, as it should. The cargo is then delivered to the stores, the tags printed (waste of paper), with full price, and the shelves restocked. Each store has to deal with their local taxation or absence of it.

    It is not a very complex endeavour.

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  • [–] 3 points 1 year ago

    Yes.

    Let me tell you when, why, and how I learned that you need to pay attention to taxes.

    I was in third grade and my class had a field trip. This was 47 years ago, so the exact details of the trip are lost to time and rusty memory. The lesson remained.

    There was something that the class could purchase at the end of the day on the trip and the place only took cash and the school was not doing anything to help, except tell the kids about it and the price. Which was something like $5. I told my Mom and she handed me a $5 bill, plus a quarter, which confused my 3rd grade brain. She said to due to some strange words "sales tax, which was 5% in my state at the time. Got to school that morning and all my classmates were proud that they had their $5 bill, but none seemed to have a quarter. So I kept the presence of my quarter a secret and was a little embarrassed about it. Yes, I was young and stupid. Now I am old and stupid.

    When it came time to purchase the whatsit at the end of the day, me and one other of my classmates produced a quarter to buy it. The teachers and chaperones had to cover the sales tax for the other 20 kids and they were pissed.

    I went to school and learned a lesson that has stuck with me for nearly 50 years.

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  • [–] 3 points 1 year ago

    Yeah, it's shitty, but we also know it's gonna happen. It's not like it's a surprise. Sometimes you might get a little extra sticker shock but it's not as underhanded as it seems unless you're very new to the process. The same way we tip, I just assume I'm gonna pay ~30% more than the price due to tax and tip.

    I've also never had to budget so much that the specifics of the tax mattered to me, like I've never had to stretch money like that, so that could be part of it.

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  • [–] 5 points 1 year ago

    An extra six percent isn’t really the difference between a big purchase and a small one, so it’s pretty much just background noise for me. I know to leave some wiggle room if my budget is tight but don’t make the effort to calculate my technical maximum. Worst case scenario I get one less item than I planned.

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  • [–] 0 points 1 year ago

    Sales taxes vary based on city, county, and state rates. They can also be waived if you, the buyer, have a reseller permit or are purchasing for a non profit.

    It's not underhanded and is annoying for sellers too because they have to know a lot about sales taxes as well. They could show you the price with local taxes included but then most customers would think their prices are too high comparing to other merchants.

    So the price shown on the product in a store or online is only what the merchant is selling it for. The price at the register is what the merchant is selling it for plus the taxes they have to collect (unless you're excluded for the reasons mentioned above).

    The tax is a buyer obligation, not a seller obligation but sellers have to be an intermediary. So buyers should be educated about the tax laws that apply to them (in this system).

    The receipt should be clearly marked so you know exactly how much went to the product and how much went to tax. You can itemize and deduct your sales taxes from your federal income taxes if you're so inclined to track it (and it's a better result than the standard deduction)

    It's more complex than a VAT system but enables local jurisdictions to levy taxes to pay for various things applicable to their area.

    πŸ€·β€β™‚οΈ

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