> If there are two shops selling the same item in near
> proximity and one charges higher prices (because of sales
> tax) then, all things being equal, why would customers not
> simply take their business to the shop with the lower prices?
Exactly.
> Why would any customer happily pay a higher price, just
> because one includes tax?
You're asking the right questions (finally).
>> Have you compared places that charge sales tax with those
>> who sell on the Internet and avoid having to charge it
>> (in a lot of cases) ...?
>
> No, I haven't. What is your point?
Consumers pay (bear the burden of) sales tax in the US.
/jordan