I got very randomly bumped up to first class on a transatlantic flight for business. I do not travel much for business, especially internationally. So, I definitely should not have had priority over more regular accounts. I have to assume I just got lucky, and that flight happened to have no frequent flyers.
It was an eye opening experience. I got to hang out in a secret lounge. When my flight was ready to board, multiple staff escorted us to the gate. When we landed, we took a private van to a secret side entrance, which had its own first class only passport check. We were brought to another secret first class lounge through hidden back hallways to wait for our connections. The lounge looked down over the terminal, and the exit was a nondescript door you’d assume was a maintenance entrance.
Being around that level of service and the other people in first class, it’s clear the wealthy live in another world. I looked up how much that ticket normally goes for after, and full price is for many people a yearly salary. It was nice, but it seems like a crazy way to divide resources.
The major reason given is that taxes vary so much in the US by location that it would be onerous for businesses with locations in different areas to print different price tags and advertise prices broadly.
It’s even an issue online because, until you enter your address, the online retailer has no clue what your tax rate will be, and they have to assess tax based on the purchaser’s location. Postal code isn’t always enough, as they can be shared by different cities with different tax rates.
Some areas also vary tax by date (tax free holidays), though I don’t think consumers would care if their total ended up being cheaper than they thought.
A national standard VAT would be the only way businesses might start including tax in price, but there’s no way to do that without a constitutional amendment. States have the power to tax, and they’re not going to stop now even if they receive VAT revenues.