4 ms·
> In the US there are thousands of overlapping and independent sales tax authorities. Each tax authority has their own complex sales tax rules with respect to w
by dmurray 3y ago
> In the US there are thousands of overlapping and independent sales tax authorities. Each tax authority has their own complex sales tax rules with respect to what products they apply to and the rates. Each authority can change these on an arbitrary schedule.
Still, seems like the retailer is in a better position to handle that complexity than the consumer. Surely it's better to have the retailer advertise the post-tax price (and occasionally lose money if they wrote the price tag assuming one set of taxes, and determined a different one applied at checkout) than for the customer not to know whether the $30 item they are buying is $32 or $38. It's not even that important that the customer's receipt correctly itemizes the taxes - that's nice, but it matters more that the retailer pays the right amount to the tax collector at the end of the year.
Also, "thousands of overlapping sales tax authorities" overstates the complexity. A typical retail location (the level at which price tags are usually decided) deals with 0-3.
- jandrewrogers 3y agoThe customer's receipt absolutely does need to correctly itemize sales taxes. It is an input to the customer's own tax filings. And obviously, overstating the sales tax is illegal regardless. Any sales tax decrease will not be transferred to the customer except in a delayed fashion under your model. Furthermore, requiring the retailer to eat any downside on sales tax changes will cause average prices to increase, albeit slightly in most cases, to transfer the risk to the customer as happens in every other market where operating costs are not directly chargeable.