Why can't the U.S. pay in exact change like Europe? Ex. If you see a tag that says 2 Euro, that's what you pay

Question

If you see a tag for an item here that says $2, you pay that and the tax, why can't tax be included or whatever the system is

Answer 1

Because there are no sales taxes in Europe. But don't think for a second that that's a good deal because it isn't. In Europe (and most of the rest of the world) the government collects VAT instead. That is built in to the shelf price so how much you are being soaked for it is not immediately apparent. In Europe, VAT hovers around 19% to 20%.

Americans are more demanding of openness in their government, hence the addition of sales tax at the point of sale. On top of that, VAT is a bookkeeping and reporting nightmare for businesses. Businesses pay incoming VAT on all purchases and collect outgoing VAT on all sales, taking a credit for the incoming VAT paid on the goods sold. That sounds simple but it is not.

To add insult to injury, the business pays VAT on all shrinkage, i.e. goods that are damaged before they're sold, stolen, etc. since there is no outgoing VAT on shrinkage to offset the incoming VAT already paid. Under a sales tax system, the business does not pay tax on goods purchased for resale and only collects and renders it for goods actually sold.

Answer 2

what about vat? what about taxis that suddenly charge 3 times the gonig rate? what about ice cream cones that are $10 if you buy at the wrong place? what about gypsys stealing your $ & passport? i'll take a stated and predictable sales tax any day!

Answer 3

Maybe Americans don't consider tax to be an inherent and unavoidable part of every purchase. And maybe we can do maths instead of trying to act superior to everyone else.

Answer 4

because that isn't how it is. It's quite difficult to change a system once it's started.