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> Why not do it like other countries and just include one, > final price, which is what comes out of my pocket? While it would be nice to have the price I
by notdonspaulding 11y ago
> Why not do it like other countries and just include one,
> final price, which is what comes out of my pocket?
While it would be nice to have the price I see up front match the amount of money that actually leaves my wallet, there's a good reason it doesn't.
In the US, taxes vary by where you are. Your city, county, state, and the federal government can all levy taxes on just about anything they want. The only thing that keeps those entities from constantly raising taxes is that consumers know when a price hike is caused by the business raising its prices versus the local municipality increasing taxes.
If McDonald's wants to sell a burger for $1, it can advertise that price state-wide, and if you end up paying $1.25 in one city and $1.50 in another, that's a signal to citizens where their money is going when they buy the burger.
- StavrosK 11y agoAh, ouch. That complicates things a lot. All my trips to the US are very expensive, because I'm used to the price being the price, and it later turns out that the price is actually 20%-40% lower than what I'm going to end up paying (if you include tips). So I see a $50 steak and go "eh, that's not that bad for this quality", only to end up with a $100 bill.