Taxes and Charges

I am very grateful that in Australia, we include all the taxes in the displayed price of an item. Another thing that I need to get used to in the USA is to recognise that the displayed price does not represent the total cost of an item. I don’t mind paying taxes at all, it’s just confusing for a simple person from the other side of the world when they are added on later. .

Last night I bought a $10 glass of wine in the hotel bar. On top of the price I had to remember to add State Tax of 8%, then an obligatory tip (in a socially accepted way) of around 15% and then American Express will apply a surcharge of 3% on my foreign transactions.

That brings the total cost of my glass of wine to $12.79. Not too significant for s glass of wine, but for a dinner costing $100. It’s an additional $27.90. It’s much easier when the displayed price is actually what you pay!

(In the case of a hotel room, there is also an additional city tax that includes another amount which is little less than an additional one percent.)

One comment

  1. Pamela Saunders · ·

    Just as well you have a smart phone Bruce! All that arithmatic for a single transaction would test the grey matter. Did you ever think you would say 3 cheers for the GST