Friday 8 April 2011

The cost of things - not what you think they are

There is a very annoying phrase that you don't see here, but you do see quite often in the US: "+ sales tax". The other one is "gratuity included", but that'll be for the next post.

Here, prices are all inclusive.  Formerly, they were inclusive of sales tax; now they are inclusive of GST.  And a bloody good thing it is too - our GST rules are hideously complex.  I mean, GST has been in place in Australia for over ten years, and the authorities have only recently decided whether pizza rolls are GST-free or not. (Answer: it depends.)  Even motor vehicle traders, the last hold out, now have to list all cars at "driveaway" prices.  None of this "$32,990 plus on-roads and dealer delivery" bizzo.  The price you see is the price you pay. It makes it much easier to decide whether you can afford it or not, whether "it" is a chicko roll and a Big M, or a brand new Holden SS ute.



Now I understand that each state, and heck, for all I know, each town/county/tri-state area, has it's own rate of sales tax, and their application may have a bizarre and arcane set of rules particular to each. Regardless, the person who sets the prices at the burger joint knows exactly how much they're going to charge me (even if it's different for eat-in versus take-away). And it's not what's on their price list.

What this practice means is I haven't the faintest idea how much admission is going to cost when the website tells me it's $16.75 + tax.  And getting the correct change out according to the price list to buy an ice cream while they're assembling it, means I'm caught flat-footed when the actual price is some weird number of cents more. And working out which hotels fit in my budget is impossible when some (but not all) prices are "plus tax". Even when you contact the hotellier and ask for a quote, specifying you want the all-inclusive price. It's only on booking/payment that you discover that the "all inclusive price" you requested isn't, and is actually 12.78% more.

I get that the proprietor wants to make clear that they don't get that bit of the price.  But it's still part of the cost to me, and the price list is for my benefit, not theirs.  Harrumph.

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