Eu vs US: Which one is better for life and business - Page 3 - GoFuckYourself.com

RummyBoy · 12-09-2014, 06:49 AM

Quote:

Originally Posted by KlenTelaris

Yes it would be probably complete clusterfuck as it would be too complicated for average joe,especially for older people.Tho,in future,if cash money become obsolete and everything will be done digitally,then it would be possible automatically to send vat of each transaction,meaning seller wouldn't not need to collect again.But that wont happen in our lifetime anyway.

So what you're saying is that VAT (especially) is a very hidebound, onerous, time consuming and inefficient system...... If I understood you properly.

So many countries have pathetically complex taxation systems which effectively make the business person a slave to a system. If we could cut out that aggro, the system becomes economically much more successful and there would be less need for enforcement. Then I 100% agree with you.

As it stands these systems are basically falling apart (especially in the UK) and very poorly designed for the modern times. Some euro and asian countries have much more simple systems.

Barry-xlovecam · 12-09-2014, 09:09 AM

Taxes are just one problem to consider.

Labor costs are a big issue when you compare the EU countries and the US. Asia owns a lot of the labor markets.

The EU has a more varied labor rate -- you can't compare French and Bulgarian labor rates. The US has a smaller variation but still the locale matters a lot:

France vs. Bulgaria -- Bulgarian per household income is only 43% of French per household income
California vs. Mississippi -- in Mississippi per household income is only 64% of the per household income in California.

A lot depends on the locale and if the market is local, in that ecomomic zone (domestic) or global.

I think these locales are comparible and near weighted.

Code:

 $36,907.00 	FR
 $15,941.00 	BG
          43%	Differential
 $57,287.00 	CA
 $36,919.00 	MS
          64%	Differential
Sources:
EU: World Bank
US: US Census

Klen · 12-09-2014, 12:36 PM

Quote:

Originally Posted by RummyBoy

So what you're saying is that VAT (especially) is a very hidebound, onerous, time consuming and inefficient system...... If I understood you properly.

So many countries have pathetically complex taxation systems which effectively make the business person a slave to a system. If we could cut out that aggro, the system becomes economically much more successful and there would be less need for enforcement. Then I 100% agree with you.

As it stands these systems are basically falling apart (especially in the UK) and very poorly designed for the modern times. Some euro and asian countries have much more simple systems.

I have no clue what hidebound and onerous mean,so i'l say how it is time consuming and inefficient system.Tho key problem how there is billions of taxes,billions of criteria and everything.
Back in middle age was easier - you had to pay 10% to church,10% to king and 10% for something else as well and that was it.Also i read one interesting article how Sweden become powerful country thanks to being neoliberal for certain time,meaning how they had then low taxes and very little regulations,and now they are social country with high taxes,and as result all big companies except one was founded in era of neoliberalism.

Klen · 12-09-2014, 12:42 PM

Quote:

Originally Posted by aka123

I don't see that how this will change anything. In business trackability is everything, and when tax folks do some inspection, you, Paxum or whoever has to be able to show the details of the transaction. If nothing else, this would otherwise be money launders dream.

No i meant how goverment will run system like paxum where all other methods of payments will be either restricted or banned,and then it will possible to do it that way.

aka123 · 12-09-2014, 12:54 PM

Quote:

Originally Posted by KlenTelaris

No i meant how goverment will run system like paxum where all other methods of payments will be either restricted or banned,and then it will possible to do it that way.

Doesn't sound so good either.

Klen · 12-09-2014, 01:06 PM

Quote:

Originally Posted by aka123

Doesn't sound so good either.

Well that will happen sooner or later.But there will be probably some derivate of bitcoin as counter measure.

Struggle4Bucks · 12-09-2014, 04:48 PM

Quote:

Originally Posted by MaDalton

yes to both - but once again: as a serious business those are things you do anyways

i don't want to sound arrogant, but we're not dealing in the less than 30,000 Euro per year league...

And Klen: When you collected VAT, it has never been your money anyways, you cannot use it for something else.

Yes... it is like that... but if it wouldn't be like that then it wouldn't be like that.
The fact that it is like that doesn't mean that people could not have a problem with it.

Example.... most paysites charge 29.95 for a membership. It's a price people are familiar with and accept regarding to paysites. If you want to "let customers pay" for the vat then add $6.30 to it and your membership will cost $36.25. With that price you will absolutely lose/miss out customers. Or charge just $29.95 a month and only keep $24.76 in your pockets because the government fuckers want their vat. Which will be spend on wars, subsidies for artists who are to creative to work for a living and other bullshit, while they can't even hold a proper budget with all the money they suck. Now that's where our money goes... i prefer to keep it myself... but indeed... it doesn't work like that. I do have a problem with vat because it's not just collected and given through... it's affecting my profit in any or some way.

Barry-xlovecam · 12-09-2014, 06:11 PM

Quote:

Originally Posted by Struggle4Bucks

[O]r charge just $29.95 a month and only keep $24.76 in your pockets because the government fuckers want their vat. Which will be spend on wars, subsidies for artists who are to creative to work for a living and other bullshit, while they can't even hold a proper budget with all the money they suck. Now that's where our money goes... i prefer to keep it myself... but indeed... it doesn't work like that. I do have a problem with vat because it's not just collected and given through... it's affecting my profit in any or some way.

That was my point -- somewhere VAT effects the price competitiveness of your product's profit. When you sell outside of the EU you collect (or absorb) no VAT. If I am a USA company (with no EU presence (domiciled office)) VAT is not collected inside the USA or in the EU -- the EU resident consumer would need to make a declaration and pay the VAT directly to that member-nation state. This is like the mechanism that is called 'Use Tax' in the USA -- you declare your internet purchases ( all purchases foreign to that state) and pay use tax -- good luck on that one -- the compliance rate is very low overall.

12-09-2014, 09:09 AM	#102
Barry-xlovecam It's 42 Industry Role: Join Date: Jun 2010 Location: Global Posts: 18,083	Taxes are just one problem to consider. Labor costs are a big issue when you compare the EU countries and the US. Asia owns a lot of the labor markets. The EU has a more varied labor rate -- you can't compare French and Bulgarian labor rates. The US has a smaller variation but still the locale matters a lot: France vs. Bulgaria -- Bulgarian per household income is only 43% of French per household income California vs. Mississippi -- in Mississippi per household income is only 64% of the per household income in California. A lot depends on the locale and if the market is local, in that ecomomic zone (domestic) or global. I think these locales are comparible and near weighted. Code: $36,907.00 FR $15,941.00 BG 43% Differential $57,287.00 CA $36,919.00 MS 64% Differential Sources: EU: World Bank US: US Census