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We 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
by tux1968 4y ago
We 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 agoAnd yet that is exactly how gasoline is sold across the country!
- ensignavenger 4y agoGas prices change very frequently, so almost everyone uses a digital display to show the price... it is much easier to change 3 or 4 prices than to change thousands of labels when the tax changes.
- voisin 4y agoIf the argument is that the number of products and consequent ease of updating pricing to include taxes, then there are a huge group of items that should include tax in the quoted price. Admissions tickets to a movie or concert, flight prices, anything digital/online that can be updated immediately like gas prices, vehicles, etc. In other words, I don’t think that argument holds.
- mwint 4y agoFlight prices are generally displayed all-inclusive in the US.[0] 0: https://www.theflightexpert.com/all-in-ticket-prices-usdot-rule/ https://www.theflightexpert.com/all-in-ticket-prices-usdot-r...
- kalleboo 4y agoThey should also require stores that have adopted e-Ink price displays to do it
- wizofaus 4y agoIn Australia all prices include GST (equivalent of VAT) but invoices typically show how much the GST component is, which seems to achieve both goals. Plus everyone just knows GST is 10% and applies to almost everything except food and a few essentials. So there's no hiding the cost of government.
- tux1968 4y agoIntellectually, I know that you are correct. However, to this day, every time I buy something a bit pricey, the extra charge always feels a bit dear. That contemplation isn't as likely if you haven't already internalized the pre-tax price. So while, we both "know" the cost of government, people who every day have to face those calculations in a very tangible way, probably feel it more acutely.
- wizofaus 4y agoPerhaps, but why's that an advantage?
- tux1968 4y agoFor the same reason that being more aware of your personal spending, leads to better personal decisions. Out of sight, out of mind, is a recipe for less oversight and responsibility from decision makers. Governmental spending can be a huge drag on the economy, and people may not realize just how much, unless they are personally confronted with the true scale of governmental intrusion. Many people today take it all as an unquestionable given, rather than as one choice among many.