Is this true about the price of goods in America???

Question

Pardon my ignorance.

But someone told me that in America often the price of the Value Tax is not added onto the price label in stores.

So for example if the state i was in had a 5% Value Tax rate and I saw a can of coke priced as being 80 cents, it would actually be 84 cents when i get to pay for it.

Is this true? Do American price tags exclude the Value Tax, It doesn't sound true to me.

Oh I see, how interesting.

I'm in the UK where our 'Value Added Tax' is incorporated into the price already.

So for example a can of coke over here would be listed as 50 pence so you pay 50 pence as the cash desk.

Answer 1

Yes, and it probably has to do as much as anything with American attitudes to government. The stores want you to know that they are not charging you 5%, the government is. By the way, sales taxes in the US are levied by state and local governments, there is no federal sales tax, although such a tax has been proposed in some quarters.

Answer 2

The tax that you pay in some states in the US is not properly a "Value Added Tax," but rather is a sales tax, that is, a tax based on the total of the transaction, which varies from state to state. As someone who works in retail in Virginia, I know that our general tax is 5%, though some items are tax free. Some places, such as Florida, which rely pretty much completely on the sales tax for revenue, has a higher rate (9% when I lived there from 93-95.

Hope this helped.

Answer 3

Value added taxes are paid by producers and passed on to consumers at by increasing the price at each step by the value added. In the US most sales taxes are imposed by states and even sometimes cities, and they have no way of taxing producers. Also the amount varies from state to state, and between the types of goods. This means that a cardboard box that is used to package food would have a different tax rate than one that was used to package shoes and would also vary with the destination of the product . So taxes on product must be paid by the retailer on total sales, and collected at the point of sale by him from the customer, but a retailer in value added countries receives the product with the taxes already paid. It is this difference that account for the difference in the way products are priced in stores.

Answer 4

Its true in a lot of places. The tax is added onto the bill for the total shop. Ive seen price tags with the tax included in some places.

Answer 5

Yes it is called a sales tax in the United States and most states have one ,some states do not allow for certain neccessities like food to be taxed. And the local cities and towns can imply there own sales tax on top of it. Usually they give it a different name .For example in Indiana its 6% in Illinois it is 9% in

Answer 6

Yes

The price tag on any item will not reflect the tax. That depends on the state and local jurisdictions. It is also not a Value Added Tax, it is a Sales Tax.

Sales tax is only applied to certain items (in most states). Typical grocery items are not taxable in my state, nor is clothing up to $500.00. Food is usually only taxable when dining in a restaurant or getting take out.

Answer 7

Its is perfectly correct. When you get to the checkout, there they will ADD and State Tax, Federal Tax and any other tax applicable.

And, I think it hold true in each of the States.

Sash.

Answer 8

yes True. price marked is before ant taxes such as city, and state sales tax. that tax is calculated and added at the register.

Answer 9

yes