|
Page 1 of 1
|
[ 16 posts ] |
|
| Author |
Message |
|
Corpse
Don't Dream It, Be It
Joined: Wed Aug 02, 2006 12:45 pm
Posts: 37162
Location: The Graveyard
|
 Tax included in Prices. I was just talking to my friend in NZ about this. It's something I've never really thought of, I guess because it just seems... natural to bring 55 bucks with you when you by the latest Mario Party game that cost 49. But, I don't know how strange this may sound, but why aren't taxes included in prices? If something costs $9.95, why not have it at $10.55 to begin with?  _________________Japan Box Office “Gods are great ... but the heart is greater. For it is from our hearts they come, and to our hearts they shall return.”
“We were like gods at the dawning of the world, & our joy was so bright we could see nothing else but the other.”
“There are three things all wise men fear: the sea in storm, a night with no moon, and the anger of a gentle man.”
“You have to pretend you get an endgame. You have to carry on like you will; otherwise, you can't carry on at all.”
"Paper is dead without words / Ink idle without a poem / All the world dead without stories."
Last edited by Corpse on Wed Oct 29, 2008 12:05 am, edited 1 time in total.
|
| Tue Oct 28, 2008 11:57 pm |
 
|
|
|
Caius
A very honest-hearted fellow
Joined: Mon Oct 11, 2004 8:02 pm
Posts: 4767
|
Re: Tax included in Prices. Probably so that we can tell how much we are paying in taxes. It is harder to realize in things like gas. But that argument seems week in that government likes to hide our tax burden when we pay income tax. Who knows.
Why do we still have pennies? I hate them.
|
| Wed Oct 29, 2008 12:00 am |
|
|
|
Rev
Romosexual!
Joined: Tue Oct 19, 2004 3:06 am
Posts: 32636
Location: the last free city
|
Re: Tax included in Prices. Quote: http://ca.answers.yahoo.com/question/index.php?qid=20070214150046AA29kE0No definite answers, but here are some suggestions: Tax is not included because the businesses are required to remit their taxes collected based on their sales. By charging the taxes at the register the transactions are transparent and it is easy from an audit point of view to ensure that the proper amount of tax is remitted by the business owner. If taxes were included and prices were to go up, the amount of work involved to recalculate taxes would be excessive. By not including the taxes it is easier to change prices, provide discounts, etc. Businesses who remit tax also need to pay tax on items they purchase. For example, the gun shop might charge you $3 in GST on your new ammo, but pay $34 in GST to advertise the ammo sale and $95 in GST for their utilities. At the end of the month, total GST charged and total GST remitted are both used to calculate the net GST they have to fork over. It makes you feel warm and fuzzy to know exactly how much tax you paid - look at a fuel receipt in Canada, where the GST is included in the price of fuel. There's a little message with a smiley face saying "$2.17 GST included in price of fuel." These are all just suggestions. Food for thought, really.
_________________
Is it 2028 yet?
|
| Wed Oct 29, 2008 12:02 am |
|
|
|
Beeblebrox
All Star Poster
Joined: Wed Dec 01, 2004 9:40 pm
Posts: 4679
|
Re: Tax included in Prices. Corpse wrote: I was just talking to my friend in NZ about this. It's something I've never really thought of, I guess because it just seems... natural to bring 55 bucks with you when you by the latest Mario Party game that cost 49. But, I don't know how strange this may sound, but why aren't taxes included in prices? If something costs $9.95, why not have it at $10.55 to begin with? Why do things cost $9.95 instead of $10? Why does gas cost $3.499 instead of $3.50? It's all about the illusion of paying less so that the stores can get you in the doors and spending money.
|
| Wed Oct 29, 2008 12:10 am |
|
|
|
Corpse
Don't Dream It, Be It
Joined: Wed Aug 02, 2006 12:45 pm
Posts: 37162
Location: The Graveyard
|
Re: Tax included in Prices. KidRock69x wrote: Probably so that we can tell how much we are paying in taxes. It is harder to realize in things like gas. But that argument seems week in that government likes to hide our tax burden when we pay income tax. Who knows.
Why do we still have pennies? I hate them. So do I. I hate coins all together actually, I never keep any change I get back. If there's a charity box or something nearby I'll just put it in there. Anyway, pennies was also brought up. He said the lowest coin there is the dime. They no longer have pennies or nickles. _________________Japan Box Office “Gods are great ... but the heart is greater. For it is from our hearts they come, and to our hearts they shall return.”
“We were like gods at the dawning of the world, & our joy was so bright we could see nothing else but the other.”
“There are three things all wise men fear: the sea in storm, a night with no moon, and the anger of a gentle man.”
“You have to pretend you get an endgame. You have to carry on like you will; otherwise, you can't carry on at all.”
"Paper is dead without words / Ink idle without a poem / All the world dead without stories."
|
| Wed Oct 29, 2008 12:11 am |
|
|
|
Corpse
Don't Dream It, Be It
Joined: Wed Aug 02, 2006 12:45 pm
Posts: 37162
Location: The Graveyard
|
Re: Tax included in Prices. Beeblebrox wrote: Corpse wrote: I was just talking to my friend in NZ about this. It's something I've never really thought of, I guess because it just seems... natural to bring 55 bucks with you when you by the latest Mario Party game that cost 49. But, I don't know how strange this may sound, but why aren't taxes included in prices? If something costs $9.95, why not have it at $10.55 to begin with? Why do things cost $9.95 instead of $10? Why does gas cost $3.499 instead of $3.50? It's all about the illusion of paying less so that the stores can get you in the doors and spending money. I was talking about having something for, say $100.00, but paying $106.00 for it. Yes, they included tax, but why couldn't they go ahead and have it listed as $106.00 to begin with. Rev posted an argument for why it's not done so, but I know in some places they do include the tax in their items. Like NZ for example. If something was 29.99, that's what you pay, the tax was already included. _________________Japan Box Office “Gods are great ... but the heart is greater. For it is from our hearts they come, and to our hearts they shall return.”
“We were like gods at the dawning of the world, & our joy was so bright we could see nothing else but the other.”
“There are three things all wise men fear: the sea in storm, a night with no moon, and the anger of a gentle man.”
“You have to pretend you get an endgame. You have to carry on like you will; otherwise, you can't carry on at all.”
"Paper is dead without words / Ink idle without a poem / All the world dead without stories."
|
| Wed Oct 29, 2008 12:14 am |
|
|
|
getluv
i break the rules, so i don't care
Joined: Sun May 15, 2005 4:28 pm
Posts: 20411
|
Re: Tax included in Prices. it's against the law to remit it here.
and i would like to know what taxes i'm paying and how much i'm paying. telling me i paid $2 in GST rather than calculating it in my head is a life i would like.
|
| Wed Oct 29, 2008 1:11 am |
|
|
|
Christian
Team Kris
Joined: Thu Oct 28, 2004 5:02 pm
Posts: 27584
Location: The Damage Control Table
|
Re: Tax included in Prices. Corpse wrote: Beeblebrox wrote: Corpse wrote: I was just talking to my friend in NZ about this. It's something I've never really thought of, I guess because it just seems... natural to bring 55 bucks with you when you by the latest Mario Party game that cost 49. But, I don't know how strange this may sound, but why aren't taxes included in prices? If something costs $9.95, why not have it at $10.55 to begin with? Why do things cost $9.95 instead of $10? Why does gas cost $3.499 instead of $3.50? It's all about the illusion of paying less so that the stores can get you in the doors and spending money. I was talking about having something for, say $100.00, but paying $106.00 for it. Yes, they included tax, but why couldn't they go ahead and have it listed as $106.00 to begin with. Rev posted an argument for why it's not done so, but I know in some places they do include the tax in their items. Like NZ for example. If something was 29.99, that's what you pay, the tax was already included. Different accounting/audit principles in different countries, pretty much. _________________A hot man once wrote: Urgh, I have to throw out half my underwear because it's too tight.
|
| Wed Oct 29, 2008 1:51 am |
|
|
|
misutaa
je vois l'avenir
Joined: Thu Jun 30, 2005 3:33 pm
Posts: 3841
Location: Hollywood/Berkeley, CA
|
Re: Tax included in Prices. They do that a lot in Europe, though taxes there are higher than in the states. For instance, in Belgium, prices are all nice round numbers with tax included, but when you look at the receipt it says that 21% of the price was for taxes..... ouch.
_________________
"Voici mon secret. Il est très simple: on ne voit bien qu'avec le cœur. L'essentiel est invisible pour les yeux."
----Antoine de Saint-Exupéry (Le Petit Prince)
A Lonely Person is at Home Everywhere.
|
| Wed Oct 29, 2008 2:03 am |
|
|
|
bABA
Commander and Chef
Joined: Mon Oct 11, 2004 12:56 am
Posts: 30505
Location: Tonight ... YOU!
|
Re: Tax included in Prices. Corpse wrote: Beeblebrox wrote: Corpse wrote: I was just talking to my friend in NZ about this. It's something I've never really thought of, I guess because it just seems... natural to bring 55 bucks with you when you by the latest Mario Party game that cost 49. But, I don't know how strange this may sound, but why aren't taxes included in prices? If something costs $9.95, why not have it at $10.55 to begin with? Why do things cost $9.95 instead of $10? Why does gas cost $3.499 instead of $3.50? It's all about the illusion of paying less so that the stores can get you in the doors and spending money. I was talking about having something for, say $100.00, but paying $106.00 for it. Yes, they included tax, but why couldn't they go ahead and have it listed as $106.00 to begin with. Rev posted an argument for why it's not done so, but I know in some places they do include the tax in their items. Like NZ for example. If something was 29.99, that's what you pay, the tax was already included. beeble just explained it. because 106 costs looks like it costs more than 99 dollars. and if 99 dollars included taxes, that means the retailer has to put the list price of the product lower and thus lesser profits for him. the way the mind works, you know you have to pay taxes on top but sitll, seeing 449 instead of 465 makes something sound a whole lot more cheaper. There are obviously other reasons for why taxes aren't included. However, as others have pointed out, inclusion of taxes already exists in many other countries.
|
| Wed Oct 29, 2008 8:22 am |
|
|
|
Groucho
Extraordinary
Joined: Thu Oct 21, 2004 9:30 pm
Posts: 12096
Location: Stroudsburg, PA
|
Re: Tax included in Prices. As somoene who used to own a retail store thingie, you keep the taxes separate so that when you do your bookkeeping at the end of the year and have to send your sales taxes in to the state, it's very easy to do the math.
_________________Buy my books! http://michaelaventrella.com
|
| Wed Oct 29, 2008 10:49 am |
|
|
|
Jim Halpert
Stanley Cup
Joined: Sat Aug 26, 2006 1:52 pm
Posts: 6981
Location: Hockey Town
|
Re: Tax included in Prices. Corpse wrote: Beeblebrox wrote: Corpse wrote: I was just talking to my friend in NZ about this. It's something I've never really thought of, I guess because it just seems... natural to bring 55 bucks with you when you by the latest Mario Party game that cost 49. But, I don't know how strange this may sound, but why aren't taxes included in prices? If something costs $9.95, why not have it at $10.55 to begin with? Why do things cost $9.95 instead of $10? Why does gas cost $3.499 instead of $3.50? It's all about the illusion of paying less so that the stores can get you in the doors and spending money. I was talking about having something for, say $100.00, but paying $106.00 for it. Yes, they included tax, but why couldn't they go ahead and have it listed as $106.00 to begin with. Rev posted an argument for why it's not done so, but I know in some places they do include the tax in their items. Like NZ for example. If something was 29.99, that's what you pay, the tax was already included. as someone who interned in retail and will be starting a career in it when i graduate in May. The whole point is to get customers in the door. How do you do that? Either through having the superior product or having low costs. It's all about letting the customer think they are getting a better deal then they really are. Including tax on a price makes it look more expensive.
|
| Wed Oct 29, 2008 1:18 pm |
|
|
|
Gulli
Jordan Mugen-Honda
Joined: Mon May 01, 2006 9:53 am
Posts: 13403
|
Re: Tax included in Prices. When America's do their tax returns can they list all the tax they paid on goods as a writeoff? If not I find the separation rather silly, I mean people are actually affected by seeing an item without tax and go oooo cheap??? I don't buy it.
Its a flat rate of 21% at us (higher on certain electronics 24% I think) and the only company I know that list the price without Tax is Dell.
_________________
Rosberg was reminded of the fuel regulations by his wheel's ceasing to turn. The hollow noise from the fuel tank and needle reading zero had failed to convay this message
|
| Wed Oct 29, 2008 1:25 pm |
|
|
|
getluv
i break the rules, so i don't care
Joined: Sun May 15, 2005 4:28 pm
Posts: 20411
|
Re: Tax included in Prices. Groucho wrote: As somoene who used to own a retail store thingie, you keep the taxes separate so that when you do your bookkeeping at the end of the year and have to send your sales taxes in to the state, it's very easy to do the math. most electronic programs calculate the GST for you if you want your price at $12.99 or w/e. even cheap accounting software does it. i'm sorry, but as a consumer i'd rather pay for what i'm seeing.
|
| Wed Oct 29, 2008 2:00 pm |
|
|
|
getluv
i break the rules, so i don't care
Joined: Sun May 15, 2005 4:28 pm
Posts: 20411
|
Re: Tax included in Prices. Gulli wrote: When America's do their tax returns can they list all the tax they paid on goods as a writeoff? If not I find the separation rather silly, I mean people are actually affected by seeing an item without tax and go oooo cheap??? I don't buy it.
Its a flat rate of 21% at us (higher on certain electronics 24% I think) and the only company I know that list the price without Tax is Dell. ewww 21-24%
|
| Wed Oct 29, 2008 2:06 pm |
|
|
|
bABA
Commander and Chef
Joined: Mon Oct 11, 2004 12:56 am
Posts: 30505
Location: Tonight ... YOU!
|
Re: Tax included in Prices. Gulli wrote: When America's do their tax returns can they list all the tax they paid on goods as a writeoff? If not I find the separation rather silly, I mean people are actually affected by seeing an item without tax and go oooo cheap??? I don't buy it.
Its a flat rate of 21% at us (higher on certain electronics 24% I think) and the only company I know that list the price without Tax is Dell. its proven to be completely effective. probably won't work in places though where the inclusion of taxes was a norm. in those places, it may actually be viewed as an increase.
|
| Wed Oct 29, 2008 2:08 pm |
|
|
|
|
Page 1 of 1
|
[ 16 posts ] |
|
Who is online |
Users browsing this forum: No registered users and 90 guests |
|
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot post attachments in this forum
|
|
