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Your import tax goes from around 5% to 15% on most goods
AOG
Member Posts: 2,561
in Tug Tavern
Oh, whoops, I'm not supposed to say tax!
I meant fee, sorry. You are being taxed by Mr Trump for 10%.
Now for bob_c's rationalizations and intellectualizations…
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that was a GOOD tariff charge being passed onto consumers
It's basically a way to shift tax burden from the wealthy onto ordinary Americans who were dumb enough to vote MAGA.
Foreign companies will lose market share if they pass them on when their competition does not or doesn’t have to account for tariffs. That’s reality.
Whiney weenies like you can't understand they block and tariff all of our imports. Nearly every country in the world does this and they don't want to stop. Time we did the same. This is moving production of all goods back to the US of A. You hate that. You bat for the away teams and vote to destroy the nation. You are the problem. We also have a large trade imbalance with the EU because of this we're leveling the playing field. Keep cheering for the EU though but soon you'll have to wear a burka. Mooselimbs don't let you girls parade around without one.
The information I have about the EU is that they tariff'd at rates in the general range of 1% to 5% which would only demand a retention of existing US tariff rates, not a 10% tax on what you import. That's what you're getting. A new Trump 10% tax.
Now do taxes (not tariffs) on US imports into the EU.
VAT? I think all goods get hit with that
VAT is recoverable if you setup a local corp. Then you pay income taxes on the local corp.
I don't see what the material difference is. We have 10% sales tax which EU goods would get hit with. You might devise some trickeration for a subset of some cases… I don't see how that changes this situation. But, it's true to your usual. "Setting up your local corp" does not sound particularly easy for everybody.
That’s the point. It’s a pain in the ass to setup a local corp over there, which is needed to optimize. Even harder to a get a local bank account to go with that corp. The whole VAT thing is a pain in the ass. Then try hiring a staff across multiple countries and see what that does. Europe has always made it very hard and administratively intensive for US companies to do business there.
So the 15% tariff is an attempt to negatively reinforce the EU into easing the VAT and corporate setup situation?
Prior to this European companies could ship in goods into the US with no tariff and no US income tax on profits. Europe seems to be pissed at the new deal. Since US consumers pay all tariffs, seems strange to have any sort of opinion.
Well, whether or not anybody is pissed or it's unfair or whatever, I don't see a major change in VAT… they love it there. The result for the time being is getting stuck with a new Trump tax/tariff/fee/levy and net tax 25% or so in Washington. Maybe you can make a long term argument that things will even out, maybe not. But it is still going to increase prices and inflation.
We need more taxes - H
Lol, they love their VAT? Why? Consumers ultimately pay the full VAT in the end and don’t really have an opinion. Business has to keep track of inputs and outputs and remit along the way. Only governments love VAT because they get a good chunk of their sales tax upfront and it’s the business that gets stuck with the carrying cost of the governments money.
I met a woman once in Sweden who had no problem with high taxes. The Swedes manage that better.
But I meant "they" = government.
VAT blows. I setup a company in Germany years ago, reason was we had some strong leads on European business, mostly in Scandinavia and Eastern Europe. Those sales came through and found a local manufacturer to make the product. They charged VAT on every unit and they would remit to the government. Since I had a German VAT #, anything that I invoiced in Sweden or elsewhere would not have VAT on the invoice and they wouldn’t pay for it. So I was sitting on a prepaid tax asset from manufacturing bills for which there wouldn’t be any easy way to offset unless I was invoicing German customers. Germany then audits me because I haven’t paid them much of anything myself and they think I’m avoiding paying them what I have collected from my customers. Had to go through a two year VAT audit where every BOL had to be printed and shown that it was not being shipped in Germany. End of the audit was no finding and they paid me back what I was unable to offset.
Fuck Germany, fuck Europe. Fuck VAT.
We have customers that did exactly that in France when all that was getting shoved down everybody's throats in ~2021.
Not to mentioned how systems had to start supporting mapping vat/ioss values off of business rules and nobody was set up to support that at the time. It's only Enterprise customers that actually go in and set it all up without turning it into a giant mess.
Yeah the handoff from the markets to every other fucking secondary-market, shipping and tracking system...
"They love it there" 😂