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Prices in the US are not tax-inclusive, so the effect of sales tax ruins that plan.


And sales tax varies a loooooot, and change constantly

There's 12000+ distinct sales tax regimes in the US

https://sovos.com/content-library/sut/state-by-state-guide-t...


Individual stores generally only have to deal with one. Set the prices at the store, and make them tax-inclusive while you're at it. This isn't rocket science.

Companies serve billions of web pages per second. We can't handle 12,000 tax calculations?


If only it were that simple. Some sales taxes are conditional at the point-of-sale. Different customers may pay a different tax rate. This creates a situation where the display price will be incorrect part of the time and may not round to 5c or whatever the legal quantum is.


> make them tax-inclusive while you're at it.

Often not a choice the retailer has. Local laws often require the shelf price be "not tax-inclusive".

Reasons why vary, one common one is that in some instances different customers pay different rates (or none at all).


I wonder if this could encourage retailers to start advertising tax-inclusive prices. That way there's no rounding in the customer transaction (if they set all their tax-inclusive pricing at multiples of 5 cents), and then the sales tax would just be calculated in aggregate, and paid electronically with no rounding.


That’s illegal in a lot of places.


We had a coffee shop that tried to do it. Listed prices included taxes, and the total prices were in nice whole numbers (IE, $2 for a cup of coffee, $5 for a latter, $8 for a sandwich, etc.). But regulators stopped them and they had to go back to listing the prices without the sales tax.

It's frustrating how much needless friction gets put into the system.


Advertising the tax-included price is illegal? Where?

(No snark - serious question, as I'm not from the US, and would love to see the legislation and justification which required that...)


I have seen at some small coffee shops and the like but it’s rare.


So you're telling me that when I buy stuff for 12.34 that is not the amount I have to pay, but some bigger amount that I have no way to calculate precisely unless I know exactly which sales tax rules are applicable for my purchase? It's baffling how backasswards the US is.


American taxes are Conway's law, but for politics.


Don't forget the county and sometimes city tax. That's why it's not possible to list the real price.


Taxes are rounded to cents already, so this is obviously not an issue.


Is the tax unknown at the time of setting the price? If that's the problem, set the final price at price + tax, deduce tax, display that. What's the matter?


If its a wide region ad (can even be just across a metro area) showcasing a price then yes, they wouldn't know the price at a given store because the tax rates can change in less than a kilometer.

If there's a TV ad for a medium pizza for $10 at a chain they can't possibly know the tax rates for whatever actual store I'm going to go order from.

And the listing on a website won't know until I actually put in my shipping information.


I doubt that most people in the US know the local sales tax. Let alone any change that may occur due to laws changing or traveling. I'd like to see the out the door price listed but that throws the 99 cent game off retailers like. Also I don't shop very often but Aldi US is the only place I've seen the eink price displays, the rest still have paper.


So they just make the price with tax a multiple of 5 cent and still show the price without.




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