Why the taxes aren’t included in the final price in the US?

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Okay, even if they vary from state to state and from county to county, why not just include it in a final price anyway?

In: Economics

13 Answers

Anonymous 0 Comments

Businesses choose to advertise the price without tax and they are legally allowed. They want the product to appear cheaper. It is an extension of left-digit bias pricing (why prices end in .99), and of bait-and-switch tactics. People perceive a lower price because the real price involves math. Some companies take advantage of consumer perception even more by adding a variety of other hidden fees at the point-of-sale. I would like the laws to change for more transparent pricing, but oh boy, what a battle that would be.

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