- We are conditioned to expect that the price listed is not the actual final price. If I see 1 euro as a price in Italy, I can hand them 1 euro and walk away. In the US if I see $1 as the price I could get a bill for??? 1.20? then tip? 1.40? Some random magic number I have no idea how it happened? The price listed should be the price paid. Period. Stop pretending taxes aren't part of the price.
- We have legislation that makes tips part of expected compensation. Minimum wage is different for servers. Get rid of any legislation like that. Every job should pay a living wage (including benefits) or shouldn't exist. If that were in place you would see a lot fewer places begging for tips since the cost of things would be higher to match the salaries they would need to pay. So right now if you don't tip you are actually taking away someone's paycheck and that is wrong on all levels.
Of course all of this is also part of the American psyche. We really like being lied to about price. Show us a lower number, even though we know it is fake and we will end up being charged way more by the time the transaction is done, and we will hop there. Take the taxes off the price and don't include the cost of labor on the listed price and we go 'Look! A bargain!'