THanks a million Grrr. Very nice explanation!
The VAT sounds a LOT like our "sales" tax here. I think were somewhere around 9% sales tax on retail items, depending on which state you live in. I'm not sure how it works from distributor to distributor. I suppose we're a little lucky because tax is so low considering. Also, some items in the US aren't taxable, for instance, government institutions don't have to pay sales tax, as well as non-profit organizations. Additionally, restaurants / hotels etc don't have to pay tax on carry out items such as plastic forks, spoons, lunch trays etc.
Although, our tax system gets a little goofy because we have excise (additional) taxes on non-necessity items such as tobacco and alchohol, as well as gas (petrol) etc.
postage stamps here are a straight fee, no tax involved.
We do get taxed on wages, as well as buying goods, so we're the same there.
I suppose the US make their real tax money on property taxes since someone is always developing some area.
LOL, sorry folks, didn't mean to start a tax rave
It's just interesting to know what is happening in other countries. I think if the US were to raise taxes to 17%, there would be another civil war, or revolution or something along the lines. Simply stated, the US citizens would be in an uproar. 25% taxes would be cause for some scary things.
One last question while were discussing taxes, do the people in the UK / Europe learn about the Boston Tea party and the revolutionary war and other pre-united states history?