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Why is our VAT so high compared to North America?

[Deleted User][Deleted User] Posts: 2,509
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Why is the UK and indeed European VAT rates so high compared to other non-EU developed countries like the US and Canada.

Sales Tax in the US is 10% and in Canada, its around 13% and in some states and provinces its even less than this.

Yes you could argue that we in Europe get more public services like the NHS compared to the US.

But then again Canada has very similar public services like we do including a free health service and also their economy is smaller than the UK's yet they can can still keep their taxes low?

Is Europe a rip off?
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    Flyboy152Flyboy152 Posts: 14,656
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    Don't forget the State purchase taxes and any other local taxes they want to add which often brings to the equivalent of our taxes. But then they get considerably less out if their government than we do, they don't have universal health care or unemployment benefits, for example. What has always annoyed me about shopping in the US is having to add the tax on before you get to the till, so that you know how much you are spending.
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    [Deleted User][Deleted User] Posts: 2,509
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    Flyboy152 wrote: »
    Don't forget the State purchase taxes and any other local taxes they want to add. What has always annoyed me about shopping in the US is having to add the tax on before you get to the till, so that you know how much you are spending.

    I know the States and Canada have both federal and state taxes but the figures I gave were the combined figure was an average, sure some states will be cheaper and some more expensive.

    I have more experience with Canada and Ontario in particular where combined federal and provincial tax of 13% seems like very low compared to what we pay.
    And I cannot see what public services they don't offer which we do?
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    Flyboy152Flyboy152 Posts: 14,656
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    Which states charge only ten percent?
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    Lincoln HawkLincoln Hawk Posts: 1,783
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    I think Americans have much lower expectations of their government than we do. If you're out of work over there you are expected to move to where the work is. The kind of cross-generational welfare dependency we have over here simply does not exist in the US.
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    BrooklynBoyBrooklynBoy Posts: 10,595
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    Flyboy152Flyboy152 Posts: 14,656
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    Federal sales tax is ten per cent, then there are the State and local purchase taxes to add on. For example, Alabama has a four per cent general and upto a ten per cent surtax on top, making it up to twenty-four per cent
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    [Deleted User][Deleted User] Posts: 2,509
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    Flyboy152 wrote: »
    Which states charge only ten percent?

    I was talking average.

    Ontario, Canada, has 13% sales tax as an example and provides most of the benefits that we are used to like a NHS like health care system.

    Similarly they have decent welfare too.
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    MTUK1MTUK1 Posts: 20,077
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    Flyboy152 wrote: »
    Which states charge only ten percent?

    Err, most American states have sales tax at a rate of under 10%.
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    Flyboy152Flyboy152 Posts: 14,656
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    salman79uk wrote: »
    I was talking average.

    Ontario, Canada, has 13% sales tax as an example and provides most of the benefits that we are used to like a NHS like health care system.

    Similarly they have decent welfare too.

    I don't really think you have researched your theory very well.
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    Flyboy152Flyboy152 Posts: 14,656
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    MTUK1 wrote: »
    Err, most American states have sales tax at a rate of under 10%.

    Err.....You are forgetting federal sales tax of ten per cent to add on top.

    Which states have sales taxes of less than ten per cent.
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    [Deleted User][Deleted User] Posts: 2,509
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    Flyboy152 wrote: »
    I don't really think you have researched your theory very well.

    I have, thank you very much, Ontario has HST (their version of VAT) at 13%.

    I have links to that part of the world so would know.
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    Flyboy152Flyboy152 Posts: 14,656
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    salman79uk wrote: »
    I have, thank you very much, Ontario has HST (their version of VAT) at 13%.

    I have links to that part of the world so would know.

    Conveniently forgetting, of course, your claim that the citizens of the US pay less than ten per cent sales taxes.
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    MTUK1MTUK1 Posts: 20,077
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    Flyboy152 wrote: »
    Err.....You are forgetting federal sales tax of ten per cent to add on top.

    Which states have sales taxes of less than ten per cent.

    Err, I repeat the answer I gave to you already. The majority of US states have sales taxes of under 10%. Also, there is no federal sales tax of 10%. Have you ever been to the States?
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    [Deleted User][Deleted User] Posts: 2,509
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    MTUK1 wrote: »
    Err, I repeat the answer I gave to you already. The majority of US states have sales taxes of under 10%. Also, there is no federal sales tax of 10%. Have you ever been to the States?

    Indeed, :)
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    Flyboy152Flyboy152 Posts: 14,656
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    MTUK1 wrote: »
    Err, I repeat the answer I gave to you already. The majority of US states have sales taxes of under 10%. Also, there is no federal sales tax of 10%. Have you ever been to the States?

    Sorry, my bad, there is a ten per cent federal sales tax on some products and services.
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    [Deleted User][Deleted User] Posts: 2,509
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    Flyboy152 wrote: »
    Conveniently forgetting, of course, your claim that the citizens of the US pay less than ten per cent sales taxes.

    Which US state has tax higher than 10%?

    New York State has a combined sales tax of 8.875%.
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    MTUK1MTUK1 Posts: 20,077
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    Flyboy152 wrote: »
    Sorry, my bad, there is a ten per cent federal sales tax on some products and services.

    Which are?
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    GraathusGraathus Posts: 3,116
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    I think Americans have much lower expectations of their government than we do. If you're out of work over there you are expected to move to where the work is. The kind of cross-generational welfare dependency we have over here simply does not exist in the US.

    I guess the 600k plus homeless just weren't quick enough to move and the 1,6 million plus in emergency shelters missed the train to a new city. A bit of walfare dependancy to avoid the tent cities in the US is a small price to pay in the civilised world.
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    BrooklynBoyBrooklynBoy Posts: 10,595
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    My favorite state for shopping is New Hampshire.

    New Hampshire is one of only five states that do not impose any form of general sales tax on the sale or use of tangible personal property within the state.

    New Hampshire does, however, levy a tax on meals (9%), room occupancies (9%), motor vehicle rentals, use of electricity (55 cents per megawatt-hour) and telecommunications services (7%). A transfer tax is levied on real estate sales, currently 1.5 percent.
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    MTUK1MTUK1 Posts: 20,077
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    My favorite state for shopping is New Hampshire.

    New Hampshire is one of only five states that do not impose any form of general sales tax on the sale or use of tangible personal property within the state.

    New Hampshire does, however, levy a tax on meals (9%), room occupancies (9%), motor vehicle rentals, use of electricity (55 cents per megawatt-hour) and telecommunications services (7%). A transfer tax is levied on real estate sales, currently 1.5 percent.

    Hi Brooklyn Boy,

    Can you put to rest that there wether there is this mythical federal sales tax of 10% that Flyboy insists there is? I've never heard of it.
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    TimCypherTimCypher Posts: 9,052
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    Flyboy152 wrote: »
    What has always annoyed me about shopping in the US is having to add the tax on before you get to the till, so that you know how much you are spending.

    Heh, yes, that is frustrating.

    Given that the US has four jurisdictions in its sales tax structure, I guess it's impractical for shops to sticker up their goods to match.

    Theoretically, two shops belonging to the same chain on opposite sides of the street could charge different prices if they happened to fall in different tax districts.

    Regards,

    Cypher
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    Flyboy152Flyboy152 Posts: 14,656
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    TimCypher wrote: »
    Heh, yes, that is frustrating.

    Given that the US has four jurisdictions in its sales tax structure, I guess it's impractical for shops to sticker up their goods to match.

    Theoretically, two shops belonging to the same chain on opposite sides of the street could charge different prices if they happened to fall in different tax districts.

    Regards,

    Cypher

    I have never held much store in this excuse, to be honest. There is nothing stopping them using a calculator and a Sharpie.
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    BrooklynBoyBrooklynBoy Posts: 10,595
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    MTUK1 wrote: »
    Hi Brooklyn Boy,

    Can you put to rest that there wether there is this mythical federal sales tax of 10% that Flyboy insists there is? I've never heard of it.

    It all varies state by state as to what taxes are levied. In the link i posted earlier there's a proper breakdown state by state. There is a general sales tax but it varies as to what the rate is depending on state, location and what's being purchased.
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    BrooklynBoyBrooklynBoy Posts: 10,595
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    deleted, duplicate.
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    MTUK1MTUK1 Posts: 20,077
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    It all varies state by state as to what taxes are levied. In the link i posted earlier there's a proper breakdown state by state. There is a general sales tax but it varies as to what the rate is depending on state, location and what's being purchased.

    I realise that, what I mean is, Flyboy was saying that in addition to the local sales tax, there is a federal sales tax of 10%. I have travelled to the states many times, and never come across this.
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