Why does Canada and U.S.A not include tax in the prices of goods and services?

Question

I recently went to Australia and I really liked there system of including the taxes for goods and services in their prices and it made me start wondering why Canada and the U.S.A don't do the same thing. They also eliminated the penny b/c of this which saves money.

Why do we not do the same thing like many other countries in the world?

10pts for best answer! Thanks in advance!

Answer 1

Favorite Answer

Stores aren't required to include sales tax in the prices. After all, the store doesn't charge sales tax, it collects it from the buyer on behalf of the government.

If you had a store in a state with 8% sales tax, which price do you think would catch the eye of a shopper: $107.99 or $99.99? Do you now see why a store doesn't include sales tax on the price tag?

I hope this helps.

Gary

Answer 2

Every country has a different government, so every country deal differently with money.