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I live in one of the few states in the US with no sales taxes. It boggles my mind when I go to a store in another state, and buy a $0.99 soda, and the total com
by briffle 4y ago
I live in one of the few states in the US with no sales taxes. It boggles my mind when I go to a store in another state, and buy a $0.99 soda, and the total comes to $1.07. I have also never understood why the price isn't including the tax.
- CameronNemo 4y agoThe sales tax rate can change (sometimes from city to city). It is easier to keep track at the register than it is to keep track in the aisles. That's my best guess.
- jen20 4y agoI've always thought that it's probably done to engender anger at the notion of sales taxes by making the difference much clearer than it is in other places where the prices are typically bundled, and to display a lower price than the consumer is expected to pay. Not displaying the taxes is infuriating when visiting other places, since unless you look up all of the applicable taxes you're effectively just guessing at the cost of anything.
- bombcar 4y agoI think originally there may have been some "grumble why do we have to charge" but I feel much of it now is big stores wanting to advertise one price for the whole country as best they can - and "tax licensing and dock fees" is a way to get around the varying prices.
- yardie 4y agoThe sales price can change at each store location. It would be even easier to put the full price on the item in the aisle. Stores now know their inventory and track it by the minute.
- tux1968 4y agoWe had taxes bundled in the price for years in Canada. And it was changed to being separate and added on at the point of sale. The rationale given at the time, was that people should know the actual price of the things they're buying, and how much extra they're paying to support government. Essentially, the argument is that the cost of government shouldn't be invisible.
- gassiss 4y ago> Essentially, the argument is that the cost of government shouldn't be invisible. Brazil went through the same thing, but took the (imo smarter) approach of describing the tax breakdown in the receipt
- StrictDabbler 4y agoEverybody describes the tax breakdown in the receipt. The variance between countries is in the menu/catalog price scheme.
- londons_explore 4y agoThe tax breakdown on the receipt is usually because certain people are allowed to reclaim the tax if the goods are used for certain purposes. Obviously, the be able to reclaim the tax, they need to know how much has been paid on the transaction.
- StrictDabbler 4y agoYes, and it also helps to reduce or prosecute fraud where a merchant charges for a tax that doesn't exist.
- sidewndr46 4y agoI've never seen a receipt for gas that explained how much tax I was paying on the purchase.
- voisin 4y ago
- dboreham 4y ago[flagged]
- turtlebits 4y agoTax is based on the consumer’s address. Technically, the price for you is $0.99. edit: you can get a refund on the state’s portion of the sales tax, but not the city. (ex. WA state form https://dor.wa.gov/file-pay-taxes/apply-tax-refund/state-sales-tax-refund-qualified-nonresidents https://dor.wa.gov/file-pay-taxes/apply-tax-refund/state-sal...).
- willcipriano 4y agoIt is based on where the item is sold if you go to a physical store like in the example.
- mgbmtl 4y agoTechnically, it's the place of provision. So in-store vs delivery, or online event vs in-person, etc. Most entertaining: where I live, we have to charge the client's tax rate if it's consulting work, but our provincial tax rate if it's hosting.
- kube-system 4y agoWhich is not necessarily where the car and the window sticker is, if we circle back to the root comment.
- Pigalowda 4y agoSo either you’re in Alaska or you’re paying a state income tax on top of your federal income tax. They always get you somewhere!
- seanmcdirmid 4y agoYou can try living/working in Vancouver WA and doing all your shopping in Oregon. But you technically have to report and pay use taxes.
- Pigalowda 4y agoThat’s a pretty interesting idea. WA has crazy high car registration fees/tax so if someone wants to optimize this they need to drive a cheap car to decrease the burden
- seanmcdirmid 4y agoKing county does, I’m sure Clark county is more reasonable.
- weberer 4y agoYeah, that's one of the many benefits of living in New Hampshire. But what boggles my mind is why people in other states are willing to put up with sales tax at all. You're already being taxed on income. Its just the government double-dipping at that point.
- kube-system 4y agoWait you live in a state with state income tax? I’m not sure why you’re willing to put up with that. You’re just being double taxed on your income.
- eli 4y agoIncome tax is progressive; sales tax is regressive.
- StrictDabbler 4y agoIn Nevada there's no income tax, some sales tax, but the vast majority of taxable purchases are luxury purchases made by wealthy tourists and there's also a hotel room tax. So in that one case, choosing sales tax isn't regressive.
- kube-system 4y agoI know and generally I agree with taxing income for this reason. “Double taxation” is a silly reason.
- weberer 4y agoThe double taxation criticism was about sales tax.
- kube-system 4y agoI know. Not only is it silly to call it a double tax, it’s also not even correct. Even in NH that money is taxed at least 3 other times before you spend it. Sales tax would be at least the 4th tax on the same money.
- coin 4y agoThe price of the soda is $0.99, so that's the advertised price. When you negotiate salary with a new employer, do you include the employer paid Social Security and Medicare taxes? Do you say I require $100,000 or $107,650 (Social Security is $6,200, Medicare is $1,450)?
- esrauch 4y agoIn my experience in casual conversation all Americans say their salary as pre-tax, and in Europe it's more split where many people would say their salary is the post-tax amount.
- ensignavenger 4y agoWhile I like the idea of having the tax shown on the price tags... tax rates change a lot in most places in the US. The cost to change all the price tags in a store everytime the rate changes, and to do it overnight, would be crazy. Maybe once everyone uses digital eink price labels...
- wizofaus 4y agoHow often are you talking? More often than price fluctuations due to inflation? (fair bit of that recently!)
- ensignavenger 4y agoPrice fluctuations aren't usually every item in the store at the same time. Sales taxes change several times a year in my locality.
- wizofaus 4y agoWow, that sounds crazy, remind me not to move there.