THANKS FOR CLARIFICATION ON VAT!
Do VAT countries also have Income Taxes. If so, this tax is also reflected in
the prices.
rom: [email protected]
> To: [email protected]
> Subject: Re: [Vo]:How to Really Give Power to the People!
> Date: Sun, 30 Jan 2011 08:20:58 +1100
>
> In reply to Wm. Scott Smith's message of Sat, 29 Jan 2011 11:16:36 -0800:
> Hi,
> [snip]
> >In other words they will tax the royalties so you won't "Feel" like you are
> >being taxed. Really, especially in Added Value Tax Countries, the
> >overwhelming portion of the price you pay for virtually everything s to pay
> >the taxes for all the previous owners of all the parts of the goods or
> >services.
>
> I live in one of those countries, and it doesn't work quite like that. The
> actual tax is 10% of the purchase price, which is the accumulation of 10%
> charged at each sub-level of production.
>
> At each level each producer gets to deduct the 10% they paid on their
> purchases,
> and they charge the next in line 10% of the sale price, so effectively 10% of
> all the differences is passed along to the ultimate buyer (i.e. the consumer),
> who ends up paying 10% on the final sale price. IOW the VAT is 10%, not "the
> overwhelming portion".
> Regards,
>
> Robin van Spaandonk
>
> http://rvanspaa.freehostia.com/Project.html
>
