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I’m not 100% sure I follow. Are you saying this is done by retailers to dissociate themselves from sales tax and make it obvious to consumers which part of the
by catlifeonmars 3y ago
I’m not 100% sure I follow. Are you saying this is done by retailers to dissociate themselves from sales tax and make it obvious to consumers which part of the total price is the governments fault, or something else?
- soulofmischief 3y agoLoosely, yes. The historical reason is a lack of state sales tax for many states in the 20th century, however one of the main justifications for continuing this process is to highlight what portion of the price is sales tax. However, it has become incredibly evident that large chains abuse this for psychological reasons. In the EU and Japan for example, prices include tax, allowing for a more honest depiction of total cost to the consumer.