Tax-inclusive Pricing

April 7th, 2014
money, taxes
Why don't price tags show the after-tax price? In most countries this is standard, and in the US we do require it for a few things like gasoline and airline tickets. It's much more convenient for consumers because you know what something's going to cost and can have your money ready. The only advantages I can think of are relatively small:
  • Keep people aware of taxes to feed anti-tax sentiment.
  • Sell more stuff with a lower visible price.
  • Lower apparent inflation.
None of these seem big enough to merit keeping us with the current system. Is this a situation where we have concentrated benefits and diffuse harms, so no one pushes to change it as strongly as the current beneficiaries push to keep it?

(Some example rules.)

Comment via: google plus, facebook

Recent posts on blogs I like:

Linkpost for October

Effective altruism, social justice, economics, society, health, criminal justice, short stories, fun.

via Thing of Things October 1, 2024

Startup advice targeting low and middle income countries

This post was inspired by a week of working from Ambitious Impact’s office in London, and chatting with several of the startup charities there. While my experience is in the for-profit world, I think it’s applicable to entrepreneurs working on impact-driv…

via Home September 27, 2024

Advice for getting along with your kids

Lessons learned from the first 10 years The post Advice for getting along with your kids appeared first on Otherwise.

via Otherwise September 16, 2024

more     (via openring)