Quote:
Originally Posted by Barry-xlovecam
US state sales tax averages 6% or 7% and here in MI; food, medicine, services/labor, books and newspapers, tuitions, property rental are exempt.
That is a big difference from the VAT tax in the UK and Europe of 18% to 27% -- like 3 or 4 times as much and on almost all goods and services. Taking the taxation of the seller's labor also ... the costs on the GDP is even higher.
Some countries have reduced VAT for foodstuffs like Holland but in France the VAT is full rate on food.
Under the state sales tax rules purchases of goods for businesses not for resale or materials used in *industrial processing* are taxable as end user purchases.
You are comparing apples and oranges -- they both grow on trees and are fruits -- they are both consumption taxes but the similarities end there.
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I wasn?t comparing the 2. I was just pointing out that countries level sales taxes and that has nothing to do with the accusation of state subsidies that the US is getting its knickers in a twist about.
State aid at this level of investment is very widespread - countries and even states bid for companies to build a new manufacturing plant in many different ways. A few billion on ?infrastructure? and a few more billion in tax breaks on R & D, followed by a massive order from the govt or state for the new plane/micro chip/aircraft carrier.
The rules of this game are a lot more sophisticated than Trump. The UK buys enormous amounts US tech and weaponry that Boeing Lockheed et al do not want to lose to some petty trade skirmish. The UK/US trade relationship will exists long after the Orange buffoon is gone, and this nonsense is just another sideshow like Pence leaving the football game, its all about trying to show what a tough guy he is, and to cover for the lack of actual achievement since he slithered into office.
