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In Australia all prices include GST (equivalent of VAT) but invoices typically show how much the GST component is, which seems to achieve both goals. Plus every
by wizofaus 4y ago
In Australia all prices include GST (equivalent of VAT) but invoices typically show how much the GST component is, which seems to achieve both goals. Plus everyone just knows GST is 10% and applies to almost everything except food and a few essentials. So there's no hiding the cost of government.
- tux1968 4y agoIntellectually, I know that you are correct. However, to this day, every time I buy something a bit pricey, the extra charge always feels a bit dear. That contemplation isn't as likely if you haven't already internalized the pre-tax price. So while, we both "know" the cost of government, people who every day have to face those calculations in a very tangible way, probably feel it more acutely.
- wizofaus 4y agoPerhaps, but why's that an advantage?
- tux1968 4y agoFor the same reason that being more aware of your personal spending, leads to better personal decisions. Out of sight, out of mind, is a recipe for less oversight and responsibility from decision makers. Governmental spending can be a huge drag on the economy, and people may not realize just how much, unless they are personally confronted with the true scale of governmental intrusion. Many people today take it all as an unquestionable given, rather than as one choice among many.