Thursday, May 28, 2009

VAT - Value Add Tax coming to the US??

http://www.washingtonpost.com/wp-dyn/content/article/2009/05/26/AR2009052602909_pf.html

Last year I was able to go to Poland and Sweden for work. Didn't really get many oportunities to get out that much due to having to work the majority of the time but on Friday, one of the accountants in Sweden was able to take me out and about to do some shopping. I bought two things, a mixing bowl (kind of a joke but we really the bowl is awesome and is very popular in Sweden)

http://www.amazon.com/exec/obidos/tg/detail/-/B0002COC82/ref=ord_cart_shr?%5Fencoding=UTF8&m=A13HTXU7N5QMMA&v=glance

And another glass bowl that was also made in Sweden. I think it cost like 1,000 Swiss Kronos, actually I don't remember how much it cost other than there's nearly 10 Kronos to one US dollar, at least a year ago that was the conversion rate. So I get up to check out and the accountant tells me the VAT (Value Add Tax) is 21% but I can get that money back when I go through the airport. I about flipped!! 21% national sales tax. Could you imagine paying that much on everything plus still paying an income tax! And a high one at that? Well as you can see from the link, there is now the idea being pushed around of adding a national income tax here in the US. We already pay either 3% or 7% here in this area depending on if we're paying for food or some sort of non-food product. Could you imagine increasing that amount by 10% so we can afford to pay for everything that this administration wants? It's just scary. And are you going to tell me that no one over 250k has to pay this 10% if it happens? I personally think it will. I think the President wants there to be few differences between us in Europe. From the taxes to the cars we drive. You know, maybe I could deal driving a 1.0 litre car if I had a 2000 + year old building that I could drive to and look at. But we drive to work and we drive to the mall and we drive to restaurant. Europe has it's cool stuff. We have our economy and our cars!! Don't take that away!! If all things are equal between us in Europe, why would I stay here? Europe has cooler places!! Bigger mountains, cooler cities, more history, etc. Why stay if we become them? And another thing.....you pay for lunch in Euros over there and it cost roughly 8 or 9 Euros. Now when you multiple that by 1.5 and you're now paying $12! For a hotdog and a coke! 3 Euros for a coke alone which is $4.50! Gas is sold by the litre and that costs almost 2 Euros. Multiple that by 1.5 and then by 4 to equal a gallon and you're paying around $10 a gallon! This was when gas was $4 a gallon over here. So...is this really what we want?? Income tax, national/state sales tax, expensive cokes, expensive hot dogs, expensive gas, small, expensive cars, etc!

Obama has made it perfectly clear that he's not pushing off these things that he claims needs to get done any longer. What he's also saying is he's finding the money to pay for it. It's going to be through taxes!! When it does I guess it makes no difference if we live here or Europe??

4 comments:

Jessie said...

Crazy....I couldn't imagine paying for expensive cokes, gas and small expensive cars!!

I guess if that happens we should pack our bags and move over seas!! :)

Spencer said...

Jenny and I were just talking about this. Do you think that the states that turned down the stimulus money like Texas could just say no way, that tax isn't going to happen here? I think some states would revolt.

Nick said...

i have no clue??? it would be a national tax like an income tax. the only way you could avoid it would be by not buying anything. this will be the easiest and quickest way for them to make the money they need to make. but you know what, they would probably still do all those other coke and hotdog taxes and beer tax, etc. The VAT would be their biggest generator of income behind payroll taxes.

I would love to see a revolt by the majority of tax payers.

Anonymous said...

Glenn Beck was talking to someone that mentioned not paying their taxes anymore and trying to get others to join.

The Governor of Texas mentioned succession once before. Not sure if it would happen but it's nice to know it's on his mind.

Want to live in Texas??