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Given that product pricing itself is often regional and digital printing allows customization of mail pieces down to the copy, this isn't the argument it might have been 30 years ago.
In my area, even the same grocery chain charges different tax rates depending on where it's located. Towns can make deals with businesses or developers in which the sales tax gets jacked up and then rebated to the developer or business. One grocery store even closed down because they wanted a deal like this to enhance the INSIDE of the store and the town would do it only if they used the money for improvements to the outside; their contention was that the owners should be responsible for improving the interior.
So, I can see where it would be pretty much impossible for my favorite grocery chain to include the correct sales tax in prices in a mailer; my bottom line would be different depending on which store I use, and there are two I visit regularly.
When a system is in place, change can be hard and be resisted. A couple of quick notes on the subject.
Retailers in the U.S. love to give discounts or advertise 10% off and such. On a $90 item with 10% tax, is 10% off $9 or $10?
Fliers are not an issue because all stores in a chain will have the price set. Those same stores have varying prices on unadvertised items.
One circuit of theatres where I worked hid concession price increases by flipping between "tax included" and "tax not included." It was stupid, but to a certain extent it did refocus customers to complaining about tax rather than the price increase.
State sales tax laws vary, and coming up with prices including tax usually hurts the customer. When a fractional cent is owed in tax, tax is rounded up. In only some states is tax allowed to be rounded down if it is less than half a cent. Say you include tax in the item price. Rarely will the tax amount match an even cent. To be legal, the store has to charge more tax than is actually due. Then, in end of month accounting and making out returns, some states allow the store to only pay tax on the aggregate of gross sales. That means the merchant keeps the excess tax collected.
To give a specious example to make the point: Joe candy store sells penny candy. Tax on candy is 10% . Jill buys a penny candy. "That'll be two cents" says Joe. Jill says "I want 100 candies." "That will be two dollars" says Joe. If Joe added tax only at the end of the sale, Jill would only pay $1.10.
One of the interesting things I learned is that in Europe if say you go to a store the prices listed for the items are just that, no extra when checking out. That it even confuses Europeans that come to America and see a price like say $9.99 and to them they think when they check out it will just be $9.99 and are surprised when it costs more.
What do they do different that allows that but we can't do?
Politically, I prefer to know what portion of what I'm paying is tax, rather than have that amount hidden. The ire of having to pony up more money at the last minute will ride with me to the polls on the next election day, if my local representative doesn't successfully calm me down with a good rationalization.
One of the interesting things I learned is that in Europe if say you go to a store the prices listed for the items are just that, no extra when checking out. That it even confuses Europeans that come to America and see a price like say $9.99 and to them they think when they check out it will just be $9.99 and are surprised when it costs more.
What do they do different that allows that but we can't do?
We had this same topic about a year ago. Do a site search to look it up and read the responses. Or was that your thread, on the Europe forum?
In my area, even the same grocery chain charges different tax rates depending on where it's located.
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Originally Posted by Serious Conversation
Here in Tennessee, there are localized sales taxes varying by county. It would be a major chore to post everything post-tax.
I don't know of a state with sales tax that doesn't have local/regional/special district taxes as well.
Since stores don't have to move around between tax zones much, I don't see programming a completely computerized/bar coded/semi-automated pricing system with tax info to be an insurmountable chore. It's not the reason stores (and customers) resist integrated prices.
The government. They want you to spend more than you can afford.
I've been in the US for 13 years and still flinch every time I pay at the grocery store because it is so much more than I thought it will be.
You live in SoCal? Groceries are not taxed in California.
Maybe your bill is high because you're buying taxable, non-food items like paper goods, cleaning products, and toiletries at the grocery store. Supermarkets always overcharge on these types of things. Try Wal-Mart if you want to save money on them.
Retailers in the U.S. love to give discounts or advertise 10% off and such. On a $90 item with 10% tax, is 10% off $9 or $10?
In my experience, discounts are virtually always applied pre-tax, with tax on the resulting amount. A $90 item which is 10% off will be $81, plus tax on $81.
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