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The law in the USA has been changed, and the enforcement of tax laws has evolved.
Valve/Steam is required to collect your address to figure out where you are located so they know if you are to be taxed by a USA state and to know which state you are to be taxed by. This does end up affecting non-USA residents too, as they will also have to give an address to sort of prove they are not from the USA, but that's the consequence of the USAs current legal requirement.
Sorry it's inconvenient to you. Valve/Steam is also probably sorry the LAW of the USA is inconveniencing customers.
You put all your personal info on the internet for everyone to see.
Valve will take much better care of your information than you do.
They have to know where you are located in order to charge the correct amount of sales tax.