I was looking at a grocery receipt, and there are three different tax rates depending on the items. The receipt doesn’t even specify which items are taxed at which rate - just the total at each percentage.
I understand the goal of lower or higher taxes on groceries is to incentivize purchasing healthier options over more processed foods, but does it really affect purchasing decisions when the final price of the items is opaque to the consumer?
In theory, lower tax means that you have more discrenary money available to buy things.
FWIW, both big chain grocery stores where I live (in Canada) mark the taxes charged on each item, albeit only with a single-character code that’s explained nearer the bottom of the receipt. I’m surprised that it’s legal anywhere in our respective countries to withhold that information.
And indeed, even though you can see the nontaxable items clearly on the receipt, that’s not made clear at the shelves where the prices are posted. That’s where they really need to show the price including taxes.
Some liquor stores in Canada, for example, show both prices: before and after taxes. I’ll let you guess which price is rendered in the smaller font.
I think the tax (including what is taxed and number of brackets) is state dependent. But generally speaking the idea is to not penalize people for buying necessities. But you are right, it is super confusing especially if not noted on the receipt. Check out Washington state’s rules if you want your brain to hurt: https://dor.wa.gov/education/industry-guides/restaurants-and-retailers-prepared-food/retail-sales-tax#:~:text=Sales of prepared food,food from retail sales tax.
We ignore the tax rates. It is what it is.
Tax brackets usually applies to income tax. You are talking about sales tax which varies by state. Oregon doesn’t have sales tax and California doesn’t tax any grocery food. Maybe this is a discussion for the state you live in, not the whole USA.
