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You buy a bottle of wine at 10bucks with your income that pays 10%, meaning that it cost you 11 bucks. Know you know you paid taxes and got your fine bottle. Y
by conanbatt 6y ago
You buy a bottle of wine at 10bucks with your income that pays 10%, meaning that it cost you 11 bucks. Know you know you paid taxes and got your fine bottle.
You switch it to the store. Now the store charges you 11 dollars for the bottle of wine. It looks like you paid no taxes, but you did. Now you dont know your tax rate, you dont see it, and they can be raised without your approval as it is hidden from you.
VAT taxes work like that and have reached sometimes 30%+.
Furthermore, it doesnt make taxes simpler, the business still has to do tax handling for you, which means you also pay that company accountant.