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tux1968

We had taxes bundled in the price for years in Canada. And it was changed to being separate and added on at the point of sale. The rationale given at the time, was that people should know the actual price of the things they're buying, and how much extra they're paying to support government. Essentially, the argument is that the cost of government shouldn't be invisible.

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> Essentially, the argument is that the cost of government shouldn't be invisible.

Brazil went through the same thing, but took the (imo smarter) approach of describing the tax breakdown in the receipt

Everybody describes the tax breakdown in the receipt. The variance between countries is in the menu/catalog price scheme.

The tax breakdown on the receipt is usually because certain people are allowed to reclaim the tax if the goods are used for certain purposes.

Obviously, the be able to reclaim the tax, they need to know how much has been paid on the transaction.

Yes, and it also helps to reduce or prosecute fraud where a merchant charges for a tax that doesn't exist.

I've never seen a receipt for gas that explained how much tax I was paying on the purchase.

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.

Intellectually, 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.

Perhaps, but why's that an advantage?

For 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.

And yet that is exactly how gasoline is sold across the country!

Gas prices change very frequently, so almost everyone uses a digital display to show the price... it is much easier to change 3 or 4 prices than to change thousands of labels when the tax changes.

If the argument is that the number of products and consequent ease of updating pricing to include taxes, then there are a huge group of items that should include tax in the quoted price. Admissions tickets to a movie or concert, flight prices, anything digital/online that can be updated immediately like gas prices, vehicles, etc.

In other words, I don’t think that argument holds.

Flight prices are generally displayed all-inclusive in the US.[0]

0: https://www.theflightexpert.com/all-in-ticket-prices-usdot-r...

They should also require stores that have adopted e-Ink price displays to do it

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