How does this make you feel, fellow Americans? (user search)
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  How does this make you feel, fellow Americans? (search mode)
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Author Topic: How does this make you feel, fellow Americans?  (Read 8982 times)
I spent the winter writing songs about getting better
BRTD
Atlas Prophet
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Posts: 113,437
Ukraine


Political Matrix
E: -6.50, S: -6.67

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« on: December 17, 2011, 11:09:24 PM »

I remember reading there was one country (New Zealand maybe?) where the sales tax isn't included in displayed prices usually but retailers also usually tried to make the price + tax equal an even number. So all the prices would be odd numbers, but it'd even out with the tax.

Americans - how do you know the price of what you're buying? Do the percentages in your head? Guess a rough figure?

If you're paying in cash it's not going to be a whole lot and I just use the next highest denomination. If I'm at a gas station picking up food and pop and I know it'll be over $5 but less than $10 I usually pay with a $10 bill. Over $10 but less than $20 is a $20. If it's a very small amount where the tax won't be over a dollar I bring in some spare change.

I remember when I was young my mom would always make sure to go clothes and shoes shopping for me and my brothers when we were visiting Minnesota because food and clothing are exempt from our sales tax, which is not the case in North Dakota. Today I realize that was pretty silly since the type of places we'd go shopping usually (tourist-oriented malls in the metro) are no doubt going to be more expensive than most places in North Dakota to the point where it'd at least even out. I'm also sure that while a pair of jeans in a Minnesota Target aren't going to be that much more expensive than in a North Dakota Target, if they are even by even a buck that nullifies any sales tax savings (I should compare and price next time I'm in ND.)
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I spent the winter writing songs about getting better
BRTD
Atlas Prophet
*****
Posts: 113,437
Ukraine


Political Matrix
E: -6.50, S: -6.67

P P
« Reply #1 on: December 17, 2011, 11:17:16 PM »

Actually I also just realized that stores that likely have a disproportionate share of foreign tourist customers often include the taxes in their prices. There's a bunch of stores in downtown Minneapolis (like sports memorabilia ones near the stadium) that do that. I think airport gift shops often do too.
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I spent the winter writing songs about getting better
BRTD
Atlas Prophet
*****
Posts: 113,437
Ukraine


Political Matrix
E: -6.50, S: -6.67

P P
« Reply #2 on: December 19, 2011, 09:14:59 PM »

Most of that's silly, but he's right about how stupid is that the displayed prices of things don't include tax. That's the most ridiculous thing ever.

Can someone explain this to me? Is it a common practice or do only some places do it? What's the point? Huh

It's true everywhere in the U.S. and its purpose is to make things appear cheaper than they are, for the most part.

Learn something new every day...
I think a large part of it is that with variable tax rates, this allows chain establishments to advertise or mass print prices.

With things that change constantly such as gas prices, the tax price is often included.

Gas is different though because the tax is a set price per gallon, not a percentage.

And yeah one factor is that tax rates vary. As mentioned before Minnesota has food and clothing exempt.
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I spent the winter writing songs about getting better
BRTD
Atlas Prophet
*****
Posts: 113,437
Ukraine


Political Matrix
E: -6.50, S: -6.67

P P
« Reply #3 on: December 19, 2011, 10:39:17 PM »

While we're on the topic, businesses that usually include the tax in the price so it comes out to a flat price:

-Bars and some restaurants (typically family-oriented ones don't but ones that are basically just a bar that serves food do. Even family restaurants typically include the tax on drinks.)
-Movie theaters. Both for the ticket price and concessions. I wonder if this is to give the impression that movie tickets are exempt from tax and encourage people to come more. There's an indie one here that gives you a receipt if you pay with a credit card that shows the actual ticket price and the tax which I was a little stunned to see.
-Sporting events and the concessions. Like movie concessions this might also have to do with the fact that it's already so overpriced paying tax would be seen as insult to injury.
-Massage parlors. Wink I suspect that even very clinical entirely therapeutic ones do the same too even though I've never been to one. What I do wonder is how the ones I go to log and pay tax on the "upgrades".

Also I've never paid anything but flat rates for show merch but I understand that the big tours and venues pay it which is why they carefully document everything they sell, so that probably also counts. The small ones don't pay it but it's not like they're going to get in any trouble for it, not much different than a yard sale.* I've also noticed buying a ticket online includes sales tax, you don't get charged at the door, I'm going to guess that big venues just include the tax into door prices and small venues just don't pay the tax.

*One exception is if they're on an international tour and all sorts of tariffs and crap is included. I've read message board threads with hints for ways for bands to smuggle merch across the border or hide the fact that they're a touring band. Unfortunately Canadian cities often get skipped in tour dates due to the logistics of this.
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