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Then if we could pass a law mandating that prices be displayed inclusive of sales tax, that'd be great. One of my favorite parts about going to Europe is being

Then if we could pass a law mandating that prices be displayed inclusive of sales tax, that'd be great. One of my favorite parts about going to Europe is being able to add up prices in my head and have it match up exactly with the final total. The US system is nonsensical and shouldn't be used to justify other nonsensical policies like the continued use of the penny.

djrogers 8y ago
The problem with all prices being shown inclusive of tax is that the amount of the tax becomes forgotten over time. By having tax added and called out on the receipt at the register, everyone is reminded many times per day how much sales tax they're paying.
- macintux 8y ago
  Additionally, sales tax is sometimes not required, either because the product or the reason for purchase is exempt. Computers can deal with the latter, signage can't.
  - xyzzyz 8y ago
    Signage in Europe deals with this just fine.
  - notahacker 8y ago
    For bricks and mortar stores, if the majority of people due to pay the tax are capable of rounding up a posted price of $fee + tax, the minority eligible for tax exemptions are capable of rounding down a posted price of $fee - tax Might be a little different for online stores where tax can't be calculated until they know which of the many different local tax codes the sale is being made under, but as you've already noted computers can handle updating the price before people confirm the purchase.
    - Symbiote 8y ago
      European online retailers that expect significant sales to both businesses and consumers (e.g. computer components) either show both prices with different fonts, or have a button somewhere to switch between with- and without-VAT prices. Except for businesses, there isn't the situation as in the US, where the retailer is responsible for verifying that a customer is tax-exempt. People on the equivalents of food stamps pay the VAT; yes the money just goes in a circle back to the government, but it's probably easier accounting for everyone.
  - oldcynic 8y ago
    Signage in store shows the price you pay at the till. The till receipt or invoice breaks down the VAT element for you, and most places even pick out what is zero rated or exempt should you care.
  - steve19 8y ago
    Electronic signage is cheap and can deal not only with changes in tax, but also the much more frequent sales. https://en.m.wikipedia.org/wiki/Electronic_shelf_label https://en.m.wikipedia.org/wiki/Electronic_shelf_label
- brewdad 8y ago
  Nothing is stopping you from having the computer back-calculate the tax and display it on the receipt. I seem to recall the ones I got on my last European trip showed the VAT as a separate line item despite the price tag including the VAT. I mean, isn't that the whole point of having an electronic POS.
- oldcynic 8y ago
  No, it really doesn't get forgotten. Every receipt breaks out the VAT and rate. Food, books and children's clothes (and a few other things) are exempt (UK). All online purchases show VAT in the checkout and basket, and in the invoice after purchase.
jstarfish 8y ago
The problem is that there are a lot of situations in which tax is exempt and/or variable depending on the customer. i.e. Joe Sixpack is going to pay 7% on his loaf of bread, but Jane Wicstamps buying the same loaf of bread with food stamps does not get charged any tax. Additionally, some municipalities will do things like say there's a general 7% sales tax on everything, except groceries, which are taxed at 2%...until next year, when the general tax goes up to 8% and the tag on literally every item in the store needs to have the price adjusted.
- jon-wood 8y ago
  We cope just fine with variable tax rates and rules for who pays tax in the UK. The general rule is that all prices are inclusive of VAT (sales tax), if you’re VAT exempt as is the case for many businesses then you claim that money back. Some businesses allow you to provide proof of VAT exemption and sell at the price before tax to avoid having to claim back. For things that don’t have different VAT rates, such as food or children’s clothing, it’s the retailers responsibility to price that in - most people probably couldn’t even tell you which particular goods are VAT exempt.

djrogers 8y ago

The problem with all prices being shown inclusive of tax is that the amount of the tax becomes forgotten over time. By having tax added and called out on the receipt at the register, everyone is reminded many times per day how much sales tax they're paying.

macintux 8y ago
Additionally, sales tax is sometimes not required, either because the product or the reason for purchase is exempt. Computers can deal with the latter, signage can't.
- xyzzyz 8y ago
  Signage in Europe deals with this just fine.
- notahacker 8y ago
  For bricks and mortar stores, if the majority of people due to pay the tax are capable of rounding up a posted price of $fee + tax, the minority eligible for tax exemptions are capable of rounding down a posted price of $fee - tax Might be a little different for online stores where tax can't be calculated until they know which of the many different local tax codes the sale is being made under, but as you've already noted computers can handle updating the price before people confirm the purchase.
  - Symbiote 8y ago
    European online retailers that expect significant sales to both businesses and consumers (e.g. computer components) either show both prices with different fonts, or have a button somewhere to switch between with- and without-VAT prices. Except for businesses, there isn't the situation as in the US, where the retailer is responsible for verifying that a customer is tax-exempt. People on the equivalents of food stamps pay the VAT; yes the money just goes in a circle back to the government, but it's probably easier accounting for everyone.
- oldcynic 8y ago
  Signage in store shows the price you pay at the till. The till receipt or invoice breaks down the VAT element for you, and most places even pick out what is zero rated or exempt should you care.
- steve19 8y ago
  Electronic signage is cheap and can deal not only with changes in tax, but also the much more frequent sales. https://en.m.wikipedia.org/wiki/Electronic_shelf_label https://en.m.wikipedia.org/wiki/Electronic_shelf_label
brewdad 8y ago
Nothing is stopping you from having the computer back-calculate the tax and display it on the receipt. I seem to recall the ones I got on my last European trip showed the VAT as a separate line item despite the price tag including the VAT. I mean, isn't that the whole point of having an electronic POS.
oldcynic 8y ago
No, it really doesn't get forgotten. Every receipt breaks out the VAT and rate. Food, books and children's clothes (and a few other things) are exempt (UK). All online purchases show VAT in the checkout and basket, and in the invoice after purchase.

jstarfish 8y ago

The problem is that there are a lot of situations in which tax is exempt and/or variable depending on the customer. i.e. Joe Sixpack is going to pay 7% on his loaf of bread, but Jane Wicstamps buying the same loaf of bread with food stamps does not get charged any tax. Additionally, some municipalities will do things like say there's a general 7% sales tax on everything, except groceries, which are taxed at 2%...until next year, when the general tax goes up to 8% and the tag on literally every item in the store needs to have the price adjusted.

jon-wood 8y ago
We cope just fine with variable tax rates and rules for who pays tax in the UK. The general rule is that all prices are inclusive of VAT (sales tax), if you’re VAT exempt as is the case for many businesses then you claim that money back. Some businesses allow you to provide proof of VAT exemption and sell at the price before tax to avoid having to claim back. For things that don’t have different VAT rates, such as food or children’s clothing, it’s the retailers responsibility to price that in - most people probably couldn’t even tell you which particular goods are VAT exempt.