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[Keihart]

The first time i watched the taxes of NA i was pretty surprised because it's a whole lot of money at the end of the year unless you manage to write some shit off not to mention doing them it's pretty cumbersome as well.
On the other hand, VAT taxes are super easy since you get instantly charged when you buy anything.

I personally prefer VAT, i get not taxation on my salary unless i buy something and no accounting needed unless i start a business, it really changes the perception of taxes since it doesn't feel like robbery as a consumer or employee.

 

[T8SC]

VAT.





At 15%.

 

[poppabk]

VAT. I've lived in the US for over 10 years now and it still annoys me that the price on the sticker is not the price you pay.

 

[6502]

VAT. But that doesn't stop income tax in and of itself. It just makes it easier to purchase goods in comparison to the stupid USA system of essentially lying about prices.

 

[BigBooper]

I think I'd prefer a VAT to income tax, but that's not our option in the US. If we got a VAT tax, they'd just add it on top and still keep the income tax.

 

[*Nightwing]

As someone who has only known the NA Sales Tax version of tax collection, how do governments utilizing VAT properly communicate via thier actions their corruption and your inability to escape it without this sticker price guessing game every time you purchase something?

I’d certainly prefer VAT but not at the expense of having European levels of income tax on my paycheck…. Although the healthcare no matter how slow sounds worth it in comparison

 

[Cyberpunkd]

I’d certainly prefer VAT but not at the expense of having European levels of income tax on my paycheck…. Although the healthcare no matter how slow sounds worth it in comparison

Free healthcare, free education. Worth it.

 

[a multicultural team of v]

Don't most European countries have income taxes as well? In that case how is the VAT any different than sales tax here in the US? Are people really that bothered that something meant to be sold in 50 different states with probably 500 different sales tax amounts (when you factor in local sales tax amounts) is advertised at the MSRP only? Seriously who gives a shit.

Now, if we are talking pure VAT vs pure income tax I would say generally VAT is better because it ties taxation to consumption, but I can see the rationale for either.

 

[Keihart]

As someone who has only known the NA Sales Tax version of tax collection, how do governments utilizing VAT properly communicate via thier actions their corruption and your inability to escape it without this sticker price guessing game every time you purchase something?

I’d certainly prefer VAT but not at the expense of having European levels of income tax on my paycheck…. Although the healthcare no matter how slow sounds worth it in comparison

i don't get what you mean here.
At least in my country whatever you pay is what you pay, there are no hidden fees afterwards or some tax collection. The company you are buying from can pay or no their taxes and that is not your problem.
Some companies detail the VAT on your receipt, but unless you are buying for a business, it really doesn't matter.

Edit: Reading it again.... i guess i missed some sarcasm in that sentence.

 

[p_xavier]

Canadian HST is like VAT, don't know what is different really. Taxes can be added to the price directly but provinces opted not to.

 

[AJUMP23]

Income tax is federal sales tax is state level in NA. I would prefer only a sales tax for state and fed, and remove all taxes on income.
Some states also tax income, and property and fuel.

 

[Susurrus]

Europe does have income tax though....

VAT is just sales tax except it is embedded in the price.

North America and Europe both have both income tax and Sales Tax/VAT (well, US states vary on income/sales tax), I'm not sure what you're trying to compare?

 

[poppabk]

Europe does have income tax though....

VAT is just sales tax except it is embedded in the price.

North America and Europe both have both income tax and Sales Tax/VAT (well, US states vary on income/sales tax), I'm not sure what you're trying to compare?

Sales tax and VAT are slightly different. But most likely the OP is talking about the tax being included in the price rather than being added at the point of sale. Ie a 99 cent candy bar would be 99 cents (or whatever currency) when purchased but in the US it is a dollar and a few cents.

 

[AJUMP23]

US wants people to pray doing math in their heads, because we need the extra work.

 

[InterMusketeer]

Having the sales tax included in the advertised price is a lot more convenient for consumers. I don't know why you'd want to do it any other way.

 

[Cyberpunkd]

Sales tax and VAT are slightly different. But most likely the OP is talking about the tax being included in the price rather than being added at the point of sale. Ie a 99 cent candy bar would be 99 cents (or whatever currency) when purchased but in the US it is a dollar and a few cents.

That is because the definition is wrong in the US. Your sales tax is exactly VAT (value-added tax), the thing is in Europe you can have VAT on many things, including services.

The OP is also very much confused about income tax and VAT being somehow exclusive, which they are not. You pay taxes on your salary for example and you still pay VAT when purchasing something.

 

[Keihart]

That is because the definition is wrong in the US. Your sales tax is exactly VAT (value-added tax), the thing is in Europe you can have VAT on many things, including services.

The OP is also very much confused about income tax and VAT being somehow exclusive, which they are not. You pay taxes on your salary for example and you still pay VAT when purchasing something.

I guess it's changes by country, we do have some taxation on income but it's super low unless you are not a permanent resident or making money from overseas, or you are making buckets of cash. (worst case scenario, between VAT and income tax we get 40%, usually is more like 24% both considered)

(over 50% of the tax collection is coming from the consumption VAT here, in fact, compared to the around 30% of most countries on the OECD)