Why Cant Tax Be Included?
-
wrote on 6 Jan 2025, 13:30 last edited by
Just a random thought - why cant tax be included in the price that you see at the grocery store, restaurant, etc.?
Is it as simple as a place using a VAT vs. a sales tax? I wouldnt think so. Since money registers are basically computers in todays world, I would think that it would somewhat simple (in the US) to price in the sales tax.
Anyway, why would a country do a VAT vs a sales tax?
-
wrote on 6 Jan 2025, 14:27 last edited by
Not everyone pays the same amount in taxes.
-
wrote on 6 Jan 2025, 16:00 last edited by
VAT and sales tax are structurally different. Including sales tax in the price is easy with computers, though you would need to put in your zip code since they differ by geography.
-
wrote on 6 Jan 2025, 16:08 last edited by Mik 1 Jun 2025, 16:09
Yep. Amazon does it all the time. I prefer it as an additional line item, so you stay aware of what you are paying in sales tax.
-
wrote on 6 Jan 2025, 16:31 last edited by
I remember it was refreshing when I went to Europe and the price for something was exactly that. Oh, that is 15 euro? Ok... <hands over exact change>
-
wrote on 6 Jan 2025, 16:31 last edited by
I don't see why physical stores couldn't do it without a problem. In Rhode Island they do it for some alcoholic beverages (wine, spirits), but not beer. It's quite aggravating. In Massachusetts, they used to include in the price of booze, then they stopped, then they went back to doing it.
-
wrote on 6 Jan 2025, 16:41 last edited by
Retailers would spend a lot of money on the change for no discernible benefit. Seriously, how hard is it to do the math in your head?
-
Retailers would spend a lot of money on the change for no discernible benefit. Seriously, how hard is it to do the math in your head?
wrote on 6 Jan 2025, 16:56 last edited by@Mik said in Why Cant Tax Be Included?:
Retailers would spend a lot of money on the change for no discernible benefit. Seriously, how hard is it to do the math in your head?
It's an annoyance, particularly if you live and work in two different states with different rates, and yes, the change would be painful for retailers so probably not worth it
-
wrote on 6 Jan 2025, 17:23 last edited by
If you have the bandwidth in your life to consider this anything more than the slightest inconvenience, you are very fortunate.
-
wrote on 6 Jan 2025, 17:26 last edited by
Transparency is good in pricing, as we Americans are acutely aware of due to our health care system. I am perfectly fine with the price on the shelf not including tax, while the price at the register does.
-
If you have the bandwidth in your life to consider this anything more than the slightest inconvenience, you are very fortunate.
wrote on 6 Jan 2025, 17:45 last edited by Doctor Phibes 1 Jun 2025, 17:46@Mik said in Why Cant Tax Be Included?:
you are very fortunate.
It's possible I may have misheard, but I believe they call me Mr. Luck Face down at the local shops.
You have so much money, they probably refer to you as 'that banker Mik'.
-
wrote on 6 Jan 2025, 18:02 last edited by
At least they call you Mr.
I did not mean tax was insignificant, but it's at least consistent. You know how much it is and what you pay it on. It's not like they spin 'Wheel of Taxation' for every purchase to see how much you pay.
-
At least they call you Mr.
I did not mean tax was insignificant, but it's at least consistent. You know how much it is and what you pay it on. It's not like they spin 'Wheel of Taxation' for every purchase to see how much you pay.
wrote on 6 Jan 2025, 18:18 last edited by@Mik said in Why Cant Tax Be Included?:
At least they call you Mr.
I did not mean tax was insignificant, but it's at least consistent. You know how much it is and what you pay it on. It's not like they spin 'Wheel of Taxation' for every purchase to see how much you pay.
It's not always that straightforward - the beer, wine and spirits are inconsistent with each other. Then there's stuff like clothes and textbooks - regular clothes are exempt, but luxury items may not be.
Hey, it could be worse - VAT in the UK is currently at 20%, but nobody notices because it's included in the advertised price. Conversely, the property tax equivalent (council tax) is typically much lower.
-
wrote on 6 Jan 2025, 18:38 last edited by
This to me is a nothing burger. I’m far more interested in transparency from hotels and airlines and other businesses with significant fees hidden until the final checkout.
-
wrote on 7 Jan 2025, 07:21 last edited by
@89th said in Why Cant Tax Be Included?:
@Mik I thought of you tonight. Ordering a table pad for our dining table, and…
The company may potentially be breaking the law in several states/regions. I know for a fact that if they are delivering over $100K worth of goods per year into Virginia, Maryland, or DC, then they are obligated to collect and pay sales tax yo that State. There are other states that have similar rules with lower thresholds…
Plus, Minnesota does have a Usage tax in place, meaning if you buy something out of state with no sales tax and use it in Minnesota, then you are obligated to report it and pay it.
-
wrote on 7 Jan 2025, 11:59 last edited by
Hmm, I am with @89th . I like the price to be "all in". Sales tax in the US (country + state + city) can be 10% or more. That is not really insignificant. I think that a USD$20 "resort fee" on a USD$200 hotel room should not be a separate item either. It should definitely be included.
Gas prices in the US include tax. I dont think people would like it if they suddenly started showing the price without tax and then you go to pay and they tell you a different price.
Anyway, when I become the absolute leader, I will implement this. 555 (I will also not allow gas prices to be shown in tenths of a cent!!! LOL Not sure why this is allowed.
) -
wrote on 7 Jan 2025, 12:37 last edited by
I do wonder whether leaving the sales tax out of the price has the effect of keeping the rates relatively low, since you're reminded of it every time you buy something. Shopping in the UK, you don't really think about that 20% tax rate because it's always there, but never seen.
-
This to me is a nothing burger. I’m far more interested in transparency from hotels and airlines and other businesses with significant fees hidden until the final checkout.
wrote on 7 Jan 2025, 12:42 last edited by@jon-nyc said in Why Cant Tax Be Included?:
This to me is a nothing burger. I’m far more interested in transparency from hotels and airlines and other businesses with significant fees hidden until the final checkout.
Rental cars too. Bumps up the price nearly 50%.
-
@89th said in Why Cant Tax Be Included?:
@Mik I thought of you tonight. Ordering a table pad for our dining table, and…
The company may potentially be breaking the law in several states/regions. I know for a fact that if they are delivering over $100K worth of goods per year into Virginia, Maryland, or DC, then they are obligated to collect and pay sales tax yo that State. There are other states that have similar rules with lower thresholds…
Plus, Minnesota does have a Usage tax in place, meaning if you buy something out of state with no sales tax and use it in Minnesota, then you are obligated to report it and pay it.
wrote on 7 Jan 2025, 12:52 last edited by@LuFins-Dad said in Why Cant Tax Be Included?:
@89th said in Why Cant Tax Be Included?:
@Mik I thought of you tonight. Ordering a table pad for our dining table, and…
The company may potentially be breaking the law in several states/regions. I know for a fact that if they are delivering over $100K worth of goods per year into Virginia, Maryland, or DC, then they are obligated to collect and pay sales tax yo that State. There are other states that have similar rules with lower thresholds…
Plus, Minnesota does have a Usage tax in place, meaning if you buy something out of state with no sales tax and use it in Minnesota, then you are obligated to report it and pay it.
Oh maybe, not sure. Honestly, dealing with this company is like a flashback to the 80s and I kind of like it. I called and asked for some sample colors (for the table pad color) and they mailed me (for $3 postage on their end) a nice folder with sheets that explain everything, the measurements, the options, and even a page on how to mail an order back without USPS delays). The mail order form (the screenshot above) reminds me of my (limited) time using the Sears catalog mail order form as a kid (I know... I'm young-ish). My favorite part is they sent 12 color (fabric squares) and on the back was a hand-written note of what the color is.
