JohnT
January 23, 2014, 5:50pm
121
Never mind this, I was the one who brought up the “20 mile” figure. My apologies.
DrDeth
January 23, 2014, 5:51pm
122
Dudes, can we take the tax semi- hijack to another thread?
JohnT
January 23, 2014, 5:53pm
123
I tried (post 61.)
But you’re right. No more comment from me on this issue.
JohnT:
And, so?
On the other hand, with the all inclusive pricing I’m looking at one vehicle for $32,400 and another for $33,000. I have to now find out the tax rates in both counties, try to back the taxes out of the prices, merely to find out that the cars are priced similarly. How is that mathematically and conceptually easier than simply multiplying .08 and .1 by the base price?
But why do you care about the pre-tax cost? Why osn’t the “all inclusive” out-of-pocket cost to you sufficient for shopping around?
moejoe
January 28, 2014, 3:18am
126
Martini_Enfield:
This was it for me. Visiting from New Zealand, where the penalties for not displaying the full, everything-inclusive price were significant and heavily enforced, the practice of not including tax in the price and then just expecting people to accept the (different to the advertised) magic number the retailer named instead came across then (and does even now) as some form of underhanded chicanery.
The fact Americans were not only OK with, but actively defended, this practice was also baffling.
Come for a visit in Oregon, we don’t have sales tax. When I moved here I had no trouble at all getting used to it! I love that the sticker price is the actual price you pay at the register.
JohnT:
And, so?
In an all-inclusive pricing model, adapted to the US’s splintered government, you’d still have to do research in order to save $ on taxes. I’m not seeing the advantage, at least in “research time”, especially if I have to back the taxes out of the price in order to get the true cost of the item.
For example, if I buy a truck I look at two dealerships. They both have Ford F-150s for $30k. But one is in the SA city limits and the other is outside, making a 2% swing in taxes (or $600.) To get this information, yes, I have to learn the tax rate… but that’s not hard for a person capable of shelling out $30k for a vehicle, right?
On the other hand, with the all inclusive pricing I’m looking at one vehicle for $32,400 and another for $33,000. I have to now find out the tax rates in both counties, try to back the taxes out of the prices, merely to find out that the cars are priced similarly. How is that mathematically and conceptually easier than simply multiplying .08 and .1 by the base price?
(Also, the assumption that one has to go 20 miles out of your way isn’t true. If I go up to the next highway exit (a mile), I save 1.75% on my taxes.)
What we do around here is ask our clients if they are GST (sales tax) registered.
If they are, we quote them a nett price, (but then add GST to the invoice) if they are not, we quote them a gross price.
A GST registered business will claim back the tax on factors of production, so they only care about the nett price.
In a retail environment - I want to see on the sticker how much I have to pay
DrCube:
I don’t think it’s an irrational hatred of government, any more than the alternative (calling it “chicanery” when businesses don’t put tax on their price tags) entails an irrational hatred of shop owners. In both cases it’s a matter of deciding what information you think is important to show up front. The US and NZ have come to opposite, but, IMO, equally reasonable, conclusions there.
As I said, I’d personally like to see both prices up front, separately, on the tags. Is there any place this is regularly done?
Yes - not sure if you’d define it as regulalry, but I do see pre and post tax prices on the shelf sticker here in Singapore