this post was submitted on 12 Nov 2024
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The major reason given is that taxes vary so much in the US by location that it would be onerous for businesses with locations in different areas to print different price tags and advertise prices broadly.
It's even an issue online because, until you enter your address, the online retailer has no clue what your tax rate will be, and they have to assess tax based on the purchaser's location. Postal code isn't always enough, as they can be shared by different cities with different tax rates.
Some areas also vary tax by date (tax free holidays), though I don't think consumers would care if their total ended up being cheaper than they thought.
A national standard VAT would be the only way businesses might start including tax in price, but there's no way to do that without a constitutional amendment. States have the power to tax, and they're not going to stop now even if they receive VAT revenues.
It's bullshit because every location prints their own price tags lol.
And then calculates tax right at the register. They have everything they need to do it, it’d hurt their bottom line and be consumer friendly so they don’t.
In some countries like India they have GST (Goods & service tax) which is applicable all over India. It was implemented in 2017 and has unified the indirect tax system across the country. This means that the same tax is levied on goods and services irrespective of the state or territory in India. Most items have 18% GST and the price tag always shows tax included, which is convenient for buyers.