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Does the average american, when naming a price of any given item, takes into account taxes or disregards it? (sopuli.xyz)
submitted 1 year ago by to c/asklemmy@lemmy.ml
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Watching a documentary, there was aremark from the journalist on how, due to how wildly taxation on goods may vary, from area to area, in the US, most retailers do not put the full prices on the shelves and instead just tally it at checkout.

This made no sense to me, a european, as when I go to any regular shop, prices already include all taxes applicable to the product.

There are specialty stores where VAT and other taxes may not be applied on the price on the shelf but those are usually wholesellers, selling for professionals, that already know what additional taxes will be added and at which rates, at checkout.

Not having the full price you'll be paying, on display, seems very underhanded and a bad practice. The client should know how much they are going to pay from the moment they pick an item.

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[–] 13 points 1 year ago (3 children)

When you say "people" you're really talking about the stores, right? The stores just put the price they charge, not the taxes which they don't get. Yes, taxes vary from state to state, but it's not like we're all going to different states every day. I know what the tax rate is in my area, and so I know to add that when I see a price in a store.

If you really mean "people" as in customers, it depends. If I'm telling someone that a store has a good price, I'll just quote the store's price. But sometimes when I'm talking about what I paid, I'll include everything "Wow, I can't believe this cart of groceries was $150..."

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  • [–] 10 points 1 year ago (2 children)

    It would require zero effort for the stores to post the actual prices. This is just another example of Capitalism Stockholm Syndrome that's displayed by so many Americans. This practice is dishonest and serves no other purpose but to deceive the consumer.

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  • [–] 7 points 1 year ago (1 child)

    It's certainly for the store's benefit, not the consumer's, but you're over stating things. Sure, there's no incentive for the store too post anything other than the price they charge, and not the state and federal charges the government layers on top of that. There's no law requiring them to do so, and obviously they'd rather post the smaller price. We could change that by making it a law, but no one really seems to care that much - just doesn't seem like that big of a deal.

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  • [–] 4 points 1 year ago (1 child)

    Counterpoint to this is gas stations and the fact that they include taxes in the price on the giant sign by the road. Why should retail be any different?

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  • [–] 6 points 1 year ago* (1 child)

    Why do consumers accept a system like this? Wouldn’t it be just better for consumers if the shop pricetag represented the exact amount you have to pay at the counter?

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  • [–] 4 points 1 year ago (1 child)

    Sure, sounds nice. But is it bad enough that people feel compelled to create a ballot measure and get it changed? Apparently not.

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  • [–] 5 points 1 year ago (2 children)

    Yeah apparently so. I guess it’s not the top of mind problem Americans have right now.

    Over here various pro-consumer watchdog organisations would protest wildly and the merchant would most likely get fined for false advertising. So the whole thing feels a bit alien to me.

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  • [–] 1 point 1 year ago (1 child)

    Sure if we started the whole tax thing today we may do it different. But it’s culture created over time. Our sales taxes all started during and shortly after the Great Depression in the 1920s. I’m sure store owners likely preferred people realize what they were charging vs the govts take. This is why I like it now. It’s very clear what the govt is taking and what the store is charging. It doesn’t bug me at all to have it added on at the register. It’s all I’ve known for 40 years. Currently I even live in a state with no sales tax (recently moved here), but I’m in a small tourist town that implemented a “resort sales tax” of 1% to help pay for city services related to tourism.

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  • [–] 3 points 1 year ago

    I think there's also a fundamental cultural difference in that "govts take". We don't normally see taxes as "taking" in that sense, but I fully understand where you're coming from - it makes sense and seems to work for you guys.

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  • [–] 0 points 1 year ago (1 child)

    Only an American would assume that when someone says people they mean companies instead of, you know, people. 🤦‍♂️

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  • [–] 1 point 1 year ago

    I assumed that because of his wording. People I know don't really "name prices," businesses do. My guess was that it was the businesses that he meant, and since it was responses about businesses that he replied to, I think I was right. But, in case, I answered for regular people, too. Don't know why you have to be shitty about it.

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