I'm sure all the retailers will be excited about all the new business an additional tax will bring in, especially high ticket items like vehicles.
As a business owner, I can't wait to send in more tax reporting forms so I will be in "compliance" with a new federal tax. The only growth the current administration wants is gov't growth.
I can only imagine how much business AND money for the govt. would be generated if taxes were reduced to let people keep more of their income and spend it...but then only people who actually EARNED income would benefit and not the entitlement voting base...and thus would not be FAIR to the poor and the wealth would not be "Spread Around".
Avatar is a tribute to my Great Grandfather, Andrew Stewart. This pin was one of his advertisements for his heating and plumbing business. I never knew him but must of inherited his love of things mechanical since I am the only blue collar worker in the family
VAT in the USA? Politicians never seize to worry me, is this to pay for this healthcare reform that I keep hearing about?
I thought that you lads and lasses already paid a string of taxes every time you bought something. I remember paying around between 6% and 12% in total in a GMT or a GST tax, and some other charges at the bottom of the receipt throughout the Midwest on groceries. Up to the point of paying for the things I thought the US was cheaper then when I looked at my receipt, I realised it was about the same for most things.
What percentage is the VAT charged at? Over here its at 17.5% on just about everything and about 5% on things like houshold utility bills. We also have a purchase tax that isn't seperated from the marked up price on groceries and other items.
Will it affect which customers will deal with you as a business? In the UK if your business gross turnover is £70000.00 or more, you automatically become registered on the date this happens. As you are probably aware you can then charge VAT to your cost of sales, and then claim back any VAT that you have paid for your cost of sales. A little bit like having a wage for being an unpaid tax collector, the only thing is you have already paid out the money for the wage before you get it. In addition to this you have to submit quaterly VAT audits/returns. And to make things worse if an invoice has been sent out and isn't due to paid until after the audit/return, you still have to pay the VAT charged on the invoice.
The trouble is though, most other business's that are VAT registered and have high turnovers, won't use your services unless you are VAT registered. And can in turn cause you loss of business. However you can apply to be registered before you hit this £70000.00 threshold, but then you end up charging domestic/residential customers VAT. This in turn can also cause you loss of business aswell, as they will prefer to use a firm that is not VAT registered. Then any vat paid for parts will be absorbed into the final bill and no more VAT will be charged extra to the bottom line.
I hope its a better and fairer system for you all than the one we have over here. With all these extra taxes it will be like the old New England taxation system, you'll be having another tea party in Boston and throwing more tea chests in the water.
Last edited by chilliwilly; 04-07-2010 at 07:06 PM.