#1
Why is tax not included on the goods when you look at the price tags? Does that not make it alot more awkward when you go and buy stuff?

When i was in America i was buying a skateboard got all the prices then went up handed over the money and then i was charged more?? Why do you not just add it on for convenience purposes?

Just wondering.
#2
Because if the average or idiot consumer sees $49.99, many of them only see the 40, not really caring to notice that it's really $50.

It's getting a little better though.

EDIT: I'm not insulting your intelligence, I can understand how someone non-American would be confused by a sudden price-up.
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#3
Quote by Riddler
Because if the average or idiot consumer sees $49.99, many of them only see the 40, not really caring to notice that it's really $50.

It's getting a little better though.


That's psychological pricing, nothing to do with what he's talking about !?
#4
Quote by ClaptonWannabe
That's psychological pricing, nothing to do with what he's talking about !?



I'm pretty sure that's why the tax is left off though, to make the item seem much less expensive. It makes sense. If there's another answer, I'd like to hear it though.
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#6
Quote by str84ever
Why is tax not included on the goods when you look at the price tags? Does that not make it alot more awkward when you go and buy stuff?

When i was in America i was buying a skateboard got all the prices then went up handed over the money and then i was charged more?? Why do you not just add it on for convenience purposes?

Just wondering.


too make things look like they're cheaper than they are
#7
Quote by Riddler
I'm pretty sure that's why the tax is left off though, to make the item seem much less expensive. It makes sense. If there's another answer, I'd like to hear it though.


No. It's because the tax rate changes pretty often. So rather than having to change the price tags on every item in the store whenever it changes, they just let the computers take care of it at the counters.
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#8
because tax varies by state? the same products in different states are pried the same (usually) but the tax is different so they dont want to confuse people...well thats what i can deduce.
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#10
Because when you add taxes all the pricing is odd, and if you have even the slightest bit of intelligence you can can just roughly add the taxes

It's really not that hard.
#11
because not every state charges the same tax on every item. i.e. Maryland has a 5% sales tax, certain foods exempted. New York has a 8.275% sales tax, some clothing and food exempted, Delaware has no sales tax. I think its purely for organizing retail stores more easily.
#14
Taxes vary state by state. A lot of times, the retailers put the price on the product, and they can't ship out products with a tax already added on the price tag. It wouldn't work.
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#15
Because, as history shows, when we Americans realize we're being taxed, we get mad and act drastically.

The store owners don't want us throwing their goods into some harbor.
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#19
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Because, as history shows, when we Americans realize we're being taxed, we get mad and act drastically.

The store owners don't want us throwing their goods into some harbor.


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#21
So people look like retards when they have $5.00 and buy a five dollar item and the sales tax brings it to $5.29
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#22
Its called a hidden tax...

I believe it started around the time of the revolutionary war, so its been here for a long time.
#23
Quote by Garret.
Because when you add taxes all the pricing is odd, and if you have even the slightest bit of intelligence you can can just roughly add the taxes

It's really not that hard.

The store sets the price, so you could set price it at 49.99 with tax included.

say it's a 5% tax

you have an item at $49.99 with tax included.

$49.99 is just 105% of what the store would sell it for without tax. (so the price excl tax = $47.61)

and the tax varies by state argument is BS because, again, the store sets the price (in most cases anyway) so the store could just calculate the tax on it and put it on at the shelf instead of having the till work it out and then charging extra.

Quickly changing tax rates could be a bit awkward but if you keep the prices the same then only the stores income after tax is effected just like a persons income is.

so basically the answer is because the companies don't want their income to be affected by the change in sales tax.
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#24
its all marketing: $19.99 looks pretty good, and they want to show the lowest price possible, so they add the tax later.
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#26
Quote by KrgrHomebrew
No. It's because the tax rate changes pretty often. So rather than having to change the price tags on every item in the store whenever it changes, they just let the computers take care of it at the counters.

Not true.
Sales tax changes very infrequently, it's income tax that changes often.
#27
Sales tax varies from state to state.

So, the MSRP is set at a flat rate, usually ending in .99, then the state's sales tax is added at the register.

Like, here in Georgia, it's 7%, but the surrounding states may only have a lower one like 5%, or a higher one like 8%.

Some states have no sales tax on some items, as well, like Minnesota (or at least they didn't when I was there).
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#28
19.99 visually looks cheaper than 20, and it's a lot more aesthetically pleasing than a price of $21.83
#29
Quote by fallenangel20
Sales tax varies from state to state.

So, the MSRP is set at a flat rate, usually ending in .99, then the state's sales tax is added at the register.

Like, here in Georgia, it's 7%, but the surrounding states may only have a lower one like 5%, or a higher one like 8%.

Some states have no sales tax on some items, as well, like Minnesota (or at least they didn't when I was there).

since when do people sell things at the MSRP?

set your price at 199.99 inc tax and have it over and done with.

stores set their own prices, or at least they do on most goods (i.e. goods without the price printed on the packaging)

Quote by skeptopotamus
19.99 visually looks cheaper than 20, and it's a lot more aesthetically pleasing than a price of $21.83

I wonder how other countries can get their prices to .99 after tax?
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Last edited by Lemoninfluence at Nov 1, 2007,
#30
With some goods like gasoline, tax is included in the price. With other goods, I think they leave it unlabeled in case the tax rate changes?

Plus in many states (for example, Texas, where I live), the tax rate is different for different items.
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#31
Quote by Lemoninfluence
since when do people sell things at the MSRP?

set your price at 199.99 inc tax and have it over and done with.

stores set their own prices, or at least they do on most goods (i.e. goods without the price printed on the packaging)


I wonder how other countries can get their prices to .99 after tax?

Because they do the math. I'm not a fucking idiot.
#32
Quote by skeptopotamus
Because they do the math. I'm not a fucking idiot.

exactly, so why not just put it there for convenience? Your argument was flawed, that's all I was saying
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#33
Quote by Lemoninfluence
exactly, so why not just put it there for convenience? Your argument was flawed, that's all I was saying

Your interpretation of my argument was flawed. It's all 100% marketing...poor and outdated though it might be, it's still a marketing ploy.
#34
You could live in Norway where the tax is akin to say something like being shanked with a brick, kneed in the balls by a walrus, and then raped by a spud... just be happy that the tax wasn't overwhelming
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#35
Quote by hethamulburton
You could live in Norway where the tax is akin to say something like being shanked with a brick, kneed in the balls by a walrus, and then raped by a spud... just be happy that the tax wasn't overwhelming


That is a hilariously funny image.
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#36
Its because tax rates constantly change, and stores are too lazy to change all their price tags every 6 or so months. Just have about 10 ccents extra per dollar...

Is it true in Germany, you dont get free refills at restaurants?
#37
Things are cheaper w/o the tax. Obviously. And when they don't include the tax, people tend to want to buy it as opposed to tax included.

Personally, I think its really annoying for the consumer, but great for the supplier.
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