Why does the price tag not recflect the actual price including tax?

Question

This is in Kissimmee, Florida. Last night, I went to a CVS pharmacy to buy a 20oz Dr. Pepper. The price tag said $1.19. I had $1.25. When I took it to the register, the price turned out to be $1.27, including tax. It was very nice of the cashier that she slid me the extra 2 cents.

Why did the price tag not reflect the actual price, including taxation? Shoudn't it? I think that is misleading.

Answer 1

Because tax rates vary from county to county and sometimes even city to city. In order for the companies to properly track their profits as well as their sales tax due (which has to be kept seperate) they have to post the retail price, not the price including tax. Also, because of things like sales and fluctuations in price it would be horrifically expensive to have to change the prices each time and recalculate the tax on everything

Answer 2

Because you have to learn that it is all about the money. They want you to be mislead as long as they do it within the law. They make more money by not including taxes with the initial cost of $1.19. You take the pop to get it ringed up and find out it is really $1.27. Are you going to get upset about the extra few cents and put the pop back or are you going to say screw it and pay the price? Pay the price.

This is kind of like having something priced $3.99 instead of $4.00. Legal deception by the marketers.

Answer 3

The answer is pretty simple. CVS is a national company, they have stores located all over the country and each state has different tax rates. When the clerk in the store goes to place a sticker on a certain product, he uses a book sent to him by headquarters with all the prices of all the different products. It would be far too much work for the corporate office to keep track of 50 different prices for one product, and it's way too confusing. So, they leave it up to the stores itself to add the tax rate into their computers and then add it per item scanned.

This isn't even taking into account county taxes on products like tobacco and alcohol (which would be about 400 different prices for one product)!

Answer 4

Some things already have a pre set price tag on them and different states have different tax amounts which would make this impossible to state both on a tag.

Some places will say the cost of the item and add the PLUS TAX along with it.

Answer 5

Sales tax is include on almost all products sold in USA. The way it is now is so you can determine the amount of tax and make sure you have been taxed the correct amount.

This site has many reports that will most likely answer most of your questions -- www.paynotaxesforlife.com

Answer 6

Including local tax in the price on the shelf would not be hard for most companies, especially large companies. However many states don't let companies do so.

Answer 7

This is America. We have the notion that if you see the Tax withheld every time you pay for something, you will be diligent in voting for additional taxes in a sensible fashion.
At least that is the original idea

Answer 8

Because that is the only way stores can keep up with how much of the money is theres for item purchased and how much they will owe the government. You should EXPECT that by now and know your local tax rate and you can do the math in your head.

Answer 9

Yes, you are right. In other countries the tax is always included so you know just what you're paying.

Answer 10

Some items are not taxable and the tax rate varies