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I love that the example VAT is 5% in this article to show that 'sales tax with pyramiding' can actually be higher, as much as 6.5% in the example. The sales ta

I love that the example VAT is 5% in this article to show that 'sales tax with pyramiding' can actually be higher, as much as 6.5% in the example. The sales tax where I live is actually 5%. The standard VAT in the UK is 20%!

milesrout 2y ago
That is irrelevant. UK consumers pay more sales tax than American consumers. That doesn't and shouldn't matter to American exporters, because UK consumers pay the same rate of VAT on imports from the EU, imports from the US, imports from New Zealand (which has a 15% VAT called GST) and domestically produced goods and services.
- ltbarcly3 2y ago
  Its not irrelevant, it means there is an untapped 20% tax we can put on goods to raise funds for government programs. The liberals in the US seem to think this would cause economic collapse. If we exempt domestic goods that is what is irrelevant.
aredox 2y ago
>The standard VAT in the UK is 20%! Yeah, and that pays for stuff like NHS. In the US you'd pay a medical insurance anyway. Compare comparable things.
- ltbarcly3 2y ago
  Great! So we can put a 20% tax on goods without causing serious economic harm, just like the UK does. Then we can exempt domestic goods because why not.
  - fransje26 2y ago
    > Then we can exempt domestic goods because why not That's clearly not how VAT works. The VAT rate is the same for locally produced goods as for imported goods of the same category.
    - ltbarcly3 2y ago
      Great, so we will have VAT+, which is a VAT where we don't have the same rate for domestically produced goods. I think you are missing the point of what I said.
  - PaulRobinson 2y ago
    Domestic goods have never been exempted, and the current law would make that illegal in the UK and the EU. I personally think VAT should be scrapped and replaced with higher capital gains and inheritance taxes, but at least I'm going to stick to the reality of why VAT is problematic, not just make dumb stuff up.

milesrout 2y ago

That is irrelevant. UK consumers pay more sales tax than American consumers. That doesn't and shouldn't matter to American exporters, because UK consumers pay the same rate of VAT on imports from the EU, imports from the US, imports from New Zealand (which has a 15% VAT called GST) and domestically produced goods and services.

ltbarcly3 2y ago
Its not irrelevant, it means there is an untapped 20% tax we can put on goods to raise funds for government programs. The liberals in the US seem to think this would cause economic collapse. If we exempt domestic goods that is what is irrelevant.

aredox 2y ago

>The standard VAT in the UK is 20%! Yeah, and that pays for stuff like NHS. In the US you'd pay a medical insurance anyway. Compare comparable things.

ltbarcly3 2y ago
Great! So we can put a 20% tax on goods without causing serious economic harm, just like the UK does. Then we can exempt domestic goods because why not.
- fransje26 2y ago
  > Then we can exempt domestic goods because why not That's clearly not how VAT works. The VAT rate is the same for locally produced goods as for imported goods of the same category.
  - ltbarcly3 2y ago
    Great, so we will have VAT+, which is a VAT where we don't have the same rate for domestically produced goods. I think you are missing the point of what I said.
- PaulRobinson 2y ago
  Domestic goods have never been exempted, and the current law would make that illegal in the UK and the EU. I personally think VAT should be scrapped and replaced with higher capital gains and inheritance taxes, but at least I'm going to stick to the reality of why VAT is problematic, not just make dumb stuff up.