To find the price Caleb would have to pay after a 40% discount, he should multiply the original price by the remaining percentage of the price that he pays.
Since the original price is considered 100%, and he is getting a 40% discount, he will pay 100% - 40% = 60% of the original price.
To express 60% as a decimal, you divide by 100:
\[ 60% = \frac{60}{100} = 0.6 \]
Therefore, Caleb should multiply the prices on the tags by 0.6 to find the price he would have to pay before tax.