Europe, Boring Until it's Not

[Montegriffo]

Middle Class income tax in the US is 25%-ish. But a 20% sales tax on top? Fuck that, that's insane.

VAT is WORSE than that. It's 20% AT EACH STAGE OF THE PRODUCTION PROCESS.

That can't be right.. it would end up at 400% or something on a car. You're talking about a tax on the factory buying from a supplier?

I thought it was on the end-consumer..

He doesn't know what he's talking about. Businesses get to claim back all VAT paid on production costs so they do not affect the final price. The only VAT the consumer pays is on the final sale price on new products.

[SuburbanFarmer]

Min rate of income tax is 10% max is 40%. No tax payable on first £11,000 approx. National insurance to pay for NHS and welfare payments is 9%.
VAT on the other hand is 20% on just about everything which is considered a luxury (non-essential)

20% tax on everything not food/housing? Holy shit, slave...

Meh, free at the point of service healthcare. How's that Obamacare reform coming along?
VAT affects the rich more than the poor because they spend more on non-essentials. I try to buy most things second hand anyway as it is greener and there is no VAT.

Solid point. So what's a tv cost over there? mid-range car, etc? Not the base price, but tax included?

[Martin Hash]

Google is your friend.

VAT is charged at each stage of production on the amount of value added.

VAT is a regressive tax that subsidizes The Rich.

[SuburbanFarmer]

Google is your friend.

VAT is charged at each stage of production on the amount of value added.

VAT is a regressive tax that subsidizes The Rich.

Right, so I'm asking Monte how that impacts the final price. It should be dramatically higher, if it's not being offset somehow.

Also, we still pay 6% tax on anything we buy - food, housing, cars, whatever.

[Martin Hash]

Google is your friend.

VAT is charged at each stage of production on the amount of value added.

VAT is a regressive tax that subsidizes The Rich.

Right, so I'm asking Monte how that impacts the final price. It should be dramatically higher, if it's not being offset somehow.

Also, we still pay 6% tax on anything we buy - food, housing, cars, whatever.

No tax on essentials (food).
No tax on the intermediate stages (subcontractors don't pay tax).
Some States have no Sales Tax at all! (Oregon, Texas)

[Montegriffo]

20% tax on everything not food/housing? Holy shit, slave...

Meh, free at the point of service healthcare. How's that Obamacare reform coming along?
VAT affects the rich more than the poor because they spend more on non-essentials. I try to buy most things second hand anyway as it is greener and there is no VAT.

Solid point. So what's a tv cost over there? mid-range car, etc? Not the base price, but tax included?

Dunno about new cars really, my sister is about to waste her money on a new Masda MX5 soft top coup which I think is around £12-15k depending on the extras.
My last TV which is 26'' high def LCD with built in DVD player was £100.
My laptop which is an HP Pavillion i5 cost a little under £300.

[SuburbanFarmer]

Meh, free at the point of service healthcare. How's that Obamacare reform coming along?
VAT affects the rich more than the poor because they spend more on non-essentials. I try to buy most things second hand anyway as it is greener and there is no VAT.

Solid point. So what's a tv cost over there? mid-range car, etc? Not the base price, but tax included?

Dunno about new cars really, my sister is about to waste her money on a new Masda MX5 soft top coup which I think is around £12-15k depending on the extras.
My last TV which is 26'' high def LCD with built in DVD player was £100.
My laptop which is an HP Pavillion i5 cost a little under £300.

Sounds about the same, then... But you're paying 20% on top of that?

[SuburbanFarmer]

Google is your friend.

VAT is charged at each stage of production on the amount of value added.

VAT is a regressive tax that subsidizes The Rich.

Right, so I'm asking Monte how that impacts the final price. It should be dramatically higher, if it's not being offset somehow.

Also, we still pay 6% tax on anything we buy - food, housing, cars, whatever.

No tax on essentials (food).
No tax on the intermediate stages (subcontractors don't pay tax).
Some States have no Sales Tax at all! (Oregon, Texas)

I pay tax on food every time I buy it. Maybe that's different in the Northwest or something?

[Martin Hash]

I pay tax on food every time I buy it. Maybe that's different in the Northwest or something?

It's State by State but I thought that one was universal. Look on your grocery receipt next time: "Taxable Items" are marked. (Liquor, for example. Cleaning supplies. Paper products. Candy in some States.)

[Okeefenokee]

Food gets a surcharge when they can't call it a tax.