Reply To: Border economics, Power & Market, Binary Intervention: Taxation

#18394
j.fournier
Member

Thanks for the explanation Jeff! The anecdotal evidence from my trip is consistent with the theory that a lack of sales tax will not necessarily result in lower prices. I visited a McDonald’s in Vancouver WA and also one in Portland OR, and observed the after tax prices for a “Big Breakfast” at each.

Vancouver WA after tax price = $4.11 = $3.79 big breakfast + $0.32 sales tax

Portland OR after tax price = $5.05 = $5.05 big breakfast + $0.00 sales tax