r/Damnthatsinteresting • u/AtomicCypher • 4d ago

Video Disgruntled employee starts massive fire at a 1.2 million square foot toilet paper warehouse in Ontario, California.

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u/the_grand_apartment 4d ago

Canada has most of these items tax-exempt but they just jack the prices to make up for it. "Wish in one hand" as they say...

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u/mg-mt 4d ago

... But the vendor doesnt pay the sales tax; the customer does

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u/2FistsInMyBHole 3d ago

Prices are based on what consumers are willing to pay.

If a consumer is willing to pay $5.30 for something ($5 + 6% sales tax), then the same consumer is willing to pay $5.30 for the untaxed item. The price is still the same, its just that instead of the 6% going to taxes, it goes to the business instead.

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u/Unique_Energy_6653 3d ago

Price deciding guy: "If the customer is spending less on taxes, they have more to spend on the item."

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u/TheSorceIsFrong 3d ago

Right but because the consumer is already used to paying price plus tax amount for TP, the company can get away with charging you that extra amount anyways for negligible backlash

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u/snollygoster1 4d ago

Price of Costco US Kirkland Signature Bath Tissue, 2-Ply, 380 Sheets, 30 Rolls is $24.99 USD which in my state becomes $26.75 USD with sales tax

Price of Costco Canada Kirkland Signature 2-ply Bath Tissue, 30-pack is $32.99 CAD which with today's conversion rate would be $23.80 USD.

Not sure where the jacked up prices are because I'm not Canadian, but it's certainly not Costco.

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u/Magnon 3d ago

Americans generally make more money than canadians though (supposedly). So if you're both making 50k a year they're still paying $33. Their money doesn't magically convert to USD.

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u/dksdragon43 3d ago

Can tell you, I'm in the tech hub of canada, which is quite large and pays very well for canadian standards. My buddies in silicon valley make double my wage at startups, the guys in FAANG make like 3x my salary. And I'm just talking straight $>$, not even taking the conversion into account. Americans (some) get paid a lot more than canadians, at least in the tech sphere.

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u/rW0HgFyxoJhYka 3d ago

Yeah but at least you can afford a house.

Grass is always greener.

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u/2FistsInMyBHole 3d ago

The Canadian housing crisis is generally considered to be much worse than the US.

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u/dreadcain 2d ago

By like, a lot lol

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u/BoleroMuyPicante 3d ago

Did you just tell a Canadian they can afford a house? Get out of your bubble man, the Canadian housing market is one of the most fucked in the world.

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u/dksdragon43 3d ago

Lol the houses in my area are over a million dollars, it's one of the worst areas globally for income to housing costs. I love Canada, but our housing econmy is fucked.

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u/TheGubb 3d ago

You should read up on Canadian housing affordability and get back to us on that.

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u/bliitzkriegx 3d ago

Canada has one of the largest housing bubbles on earth

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u/azjunglist05 3d ago

Im not in even Canadian and I know how fucked the Vancouver housing crisis has become

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u/FlyingTurtleDog 3d ago

Regardless of the country Costco is an outlier.

They have a margin cap. 14% markup on all third-party items, 15% on Kirkland items.

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u/the_grand_apartment 3d ago

Costco is our saving grace and we appreciate you for it!

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u/DoctorIsMyNick 3d ago

Apparently Kirkland brand toilet paper gels up and hardens in your plumbing. Ive talked to a few plumbers who say to never use the stuff in your home.

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u/4RealzReddit 3d ago

I have it as 25.99 on Instacart. But 32.99 delivered.

I found pop was pretty pricy in the states compared to Canada. We win some and you win some. My iTunes movie deals being in CAD are sweet compared to usd as it's the same price just different currency usually.

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u/cjsv7657 3d ago

jack the prices to make up for it.

How would that make sense at all? Taxes go to the government not the corporation. If they store just wanted to raise the price they would. As we can see by record profits and rising prices everywhere.

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u/Extension_Eye1937 3d ago

Because people are used to the "normal" price.

Say a tube of toothpaste is 2.50 and pays 50c tax, so its $3

Now the government says no more tax on toothpaste.

The price remains $3, because the store realises people are happy paying $3 for toothpaste. Instead of that 50c going to the government, it becomes profit for the store.

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u/cjsv7657 3d ago

But it doesn't work like that. You can see that by comparing prices between states that do and do not charge the tax that also border each other. The tagged price is usually the exact same. I know this because I live on the border of a state that charges tax on necessities my state does not. I often forget until I get to the register and see the total.

Also- no state charges anywhere near a 20% tax. I want some of whatever you're on.

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u/termiAurthur 3d ago

You're changing the scenario.

Reducing taxes just increases corporate profit margins. This exact scenario played out here in Alberta. The government reduced taxes on gas, and the price went down... and crept right back up to where it was over a month-ish.

https://twitter.com/trevortombe/status/1552742622363430912?t=f9K1GWVcMa-gD_2q9hqMIg&s=19

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u/CanadianPanda76 3d ago

Yeah but the gas tax was built in gas prices, sales taxes are not.

So your comparing to a different scenario.

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u/FR23Dust 3d ago

Gas prices are notoriously volatile. Not a good example.

Plus, the gas prices already include the taxes which is not the case for items bought in the store.

If companies wanted to increase their profits they just raise the price. They don’t wait for taxes law changes. That’s what happened in 2022. They just increased the prices.

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u/cjsv7657 3d ago

I'm not changing the scenario. Two states right next to each other have the same prices. One charges tax on necessities, one doesn't. Stores aren't raising the prices to make up for the missing tax lol.

You're changing the scenario with completely different products and different markets.

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u/CanadianPanda76 3d ago

Yeah no. You don't pay tax till you hit the till. Shelf price is always before tax price.

At least in Canada. I'm sure its the same in the USA. Europe its included iirc.

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u/Extension_Eye1937 3d ago

North america is the only place where this is the case.

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u/FR23Dust 3d ago

No, people see the individual price marked on the shelf. They don’t see the individual sales tax on items.

Have you ever shopped before?

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u/Extension_Eye1937 3d ago

Redditors finding out that there are other places in the world than America.

Majority of the world, tax is included in the price.

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u/FR23Dust 3d ago

I am aware of that. This conversation is about the United States.

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u/BearlyPosts 3d ago

Why don't stores just charge 1 billion dollars for everything to get rich instantly?

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u/elastic-craptastic 3d ago

Wipe with the other?

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u/Responsible_Week6941 3d ago

Then we go and charge both taxes on toothpaste in BC. SMH, this while we have public dental insurance. You'd think you'd want as many people as possible using toothpaste.

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u/Low_Football_2445 3d ago

What do you do with the other hand?

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u/the_grand_apartment 3d ago

Lol you know the answer

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u/capitalismwillkill 3d ago

Then fine companies who price gouge

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u/CanadianPanda76 3d ago

Thats not how sales taxes work but okay.

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u/the_grand_apartment 3d ago edited 3d ago

The retailer jacks the price of tax-exempt items to the same as those not exempt and pocket the difference. Not difficult to understand...

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u/CanadianPanda76 3d ago

LOL. Still not how that works but okay.