Again, it’s simpler when we discuss inflation. The sticker price of most goods is continually rising. Does that reduce demand? No, because everything is increasing at the same time and we only have a relative concept for currency in mind anyway. Folding the sales tax into the price would be like a momentarily bump in inflation. Enough for people to notice (and moan about) but longer term it would no more affect demand than inflation does.
In fact incorporating sales tax is easier to swallow, since wages don’t always track inflation so well, so the consumer can be materially worse off when goods increase due to inflation, whereas folding in sales tax would never have such an effect.
The elasticity of demand concept that you cited is almost certainly not including things like inflationary rises. If it were, then again, the demand for all goods with elastic demand should already be virtually zero by now.
That’s what I’m saying. Let’s say that Walmart sells a Widget for $4.99. Walmart only has to print 5,000 price tags for the Widget - one for the shelf at each of its 5,000 US stores. But if it accounted for sales tax, it would have to print 5,000 of them. AND make sure they all went to the right store.
Some stores have electronic shelf labels that can be remotely updated as needed. That would make it easier to include sales tax in prices but it would still be a pain as you couldn’t offer a paper circular showing prices.
This is very much in the “dumb stuff the US does that everyone else thinks is crazy” category (in my experience at least), rather than “a cool idea I saw in that one country”. Every other country just rolls sales tax into the price as it makes it much easier for everyone, the US doesn’t and it inevitably catches out everyone from another country who comes here: “Oh that thing costs a dollar, here is a dollar bill…What do you mean I need to give you more than a dollar as tax isn’t included in the price?!?”
I’m starting to think that the State Department should make a video: “Things Foreigners Need To Know Before You Come To America.”
Our bathroom stalls offer little privacy.
We generally don’t haggle over prices.
Here’s how sales tax and tipping work.
Unless otherwise indicated, you can make a right turn on a red light.
DONT LEAVE YOUR CHILDREN IN A STROLLER OUTSIDE WHILE YOU GO INSIDE TO EAT
The police will be up. your. butt. about child-safety seats.
…and so on.
If a purchase it made by a tax-exempt organization, the amount of taxes could be simply deducted at the point of sale. Actually the only difference from how it is done now is that instead of the price being adjusted up for a majority of customers, it would instead be adjusted down for a minority of customers. As for advertising, business might simply advertise the pre-tax price with a disclaimer such as “actual price may be adjusted for sales tax”. And I wouldn’t feel much sympathy for business complaining about having to adjust their marketing practices. If they have the adjust then they will adjust and that is all there is to it. .
This varies by state. Michigan scan law requires that every item be specifically price-tagged. A store may exempt up to 20 items that may be shelf-marked, but has to post a sign by the entrance stating what the exempt articles are.
Wow! You mean that purchasers pay different prices if they are tax exempt? That strikes me as a really weird system, and highly open to abuse.
The rest of the world uses VAT rather than sales tax. It works better. If there are tax exempt organisations, they can claim back the tax they’ve paid from the government.
Do you ever see airfares advertised without the taxes included? Look at the fine print on your ticket to see what a large amount of the fare is taxes (airport improvement fees, security charges, fuel surcharges, etc.). I’m sure including the taxes in airfares is worldwide now.
Air Canada states: " All prices displayed include air transportation charges and taxes, fees and surcharges – Venezuela excluded." I don’t know what the deal is with Venezuela - I’m surprised they even fly there.
This site has a breakdown of the taxes on a return Toronto-Kingston (Jamaica) trip. $500 base fare, plus almost $300 in added taxes and fees.
I miss being able to turn right on red. Of course, most of the places I drive have a roundabout or stop signs, so I wouldn’t have much opportunity to use it anyway.
Of course, after 20 years of living outside the U.S., invariably we get honked at when we’re driving in the U.S., because we’re not used to it.
I’m glad that the U.S. hasn’t adopted wrong-way parking. In certain areas it’s permitted in Switzerland and I don’t like it. Some years ago I read a newspaper article in a Swiss newspaper about traveling to the U.S., and this was one of the tips they gave to people.
I haven’t been to Australia or anywhere that uses polymer bank notes, but I’d like to see them used here in the US. Also get rid of low-value paper bills and coins like the rest of the world; to me that’s just the stubbornness of the US mindset.
Something that’s unique amongst US coins is the use of words for the values: one cent, five cents, one dime, quarter dollar, half dollar, one dollar. Most countries just put the amount (in cents or equivalent) and a number: 1, 5, 10, 25, 50, $1. I wonder what visitors to the US think when they first see a “dime” and try to figure out how many cents it’s worth: “what’s a dime anyway?”
Individual districts within a city can have different sales taxes in the US. Here’s a document (3 page pdf) from Illinois showing some different tax rates for given cities.
I don’t even estimate it. I know it’ll be some amount more, and I don’t really pay attention to how much more. I’m so used to it, I don’t even think about it.
Well, if I were on a tight budget I might add a fudge factor. But I don’t budget like that. Groceries, sundries, etc. stuff I buy regularly I just buy. My money’s not that tight. I don’t pay cash (I debit – which is kinda sorta cash, but not physical cash), so it’s not really an issue. I really only price shop on larger purchases. So, I guess you’d have to ask someone for whom pennies matter.
