the drum beat of soaking the rich is getting loud here. I know that our corporate tax is first or second highest in the world. But our personal income tax is relatively low when comared to Europe. I have been looking at the taxes from around the world and see that there are quite high percentages and VAT.
I haven’t myself read much about VAT, but my father has, and from what he has said it’s pretty terrible. As in it adds tax on each step of the process (similar to the “embedded tax” on goods here, but additional) and makes everything more expensive.
The current rate of VAT is 20%. It is charged on “non-essential” items which basically means everything except children’s clothes and fresh fruit and veg; apparently adults clothes are non-essential.
WIth the exception of in-trade business, for example wholesalers and hotels, the VAT is calculated before you get to the till. So if I see a bar of chocolate for $1 it doesn’t become $1.20 when I come to pay. With in-trade business it can be added at the till but that’s because if you’re a business you can claim VAT back in some circumstances.
Oh and 50% income tax is levied on anyone earning over £100,000 pa (approx $150,000)
I’m not sure about whether VAT is added at every stage of production. I would doubt it though. That said VAT is notoriously complicated for businesses and customs officials have a lot of statutory powers, for example to turn up unannounced and demand to see the books.
All I can say is that taxes really aren’t that low in the U.S., especially after FICA, state, and local taxes are factored in. The SS tax is totally unfair.
The current income tax is also very unfair, because there are too many exemptions for both the poor and hedge fund managers who are often very wealthy pay a lower rate than a lot of workers. If the federal government absolutely has to tax, then it should at least be fair. FICA taxes should be replaced with a 10% sales tax on all consumption of all goods sold and consumed in America, then maybe a 10% flat rate tax on all personal income received and all other taxes should be abolished. That’s still way too much taxation, but at least it’s fair and flat. Or not as painful would be the State Rate tax.
I’d say that abolishing collective representation is a good first start, then abolishing all taxes and the state is a good 2nd step.
you are right - what you propose wouid be more fair. however, taxation has nothing to do with fairness and everything to do with manipulating the sheeple, what you can get away with and how you will repay your supporters.
The income tax is seemingly not that high. It is in the 20-30% range for most people, but that is only accounting fiction. When you add social security taxes on that real tax on income easily reaches 40%. Even with these there is an accounting fiction where a part of them supposedly do not tax your paycheck, but the employer, but we know that is nonsense because the employee bears the cost.
An employee costing 1500€ with two supported children would be left with 950€ to spend on his own.
An employee costing 900€ with no supported children would be left with 550€ to spend on his own.
An employee costing 1800€ with no supported children would be left with 1000€ to spend on his own.
VAT is 20%.
That is for Slovenia.
On the upside it is considered bad taste to reveal a fondness of any politician, complaining about policemen is socially acceptable and making fun of the military is a national sport.
A Finn could pay 50 % income tax AND a 23 % VAT. That 50 % consists income tax which is highly progressive(30% for a middle income) and apprx. 20 % of municipal tax which changes by a few percents depending on where you live. And our debt is rising fast.