EU considers Internet tax

[orangejulius]

http://www.washingtonpost.com/ac2/wp-dyn/A46645-2002Feb8?language=printer

[Dr Mordrid]

I can just see the Amazon.com listing now...

How to Reduce Your Overall Revenues in a Single Step; by the EU finance committee

Don't these morons realize that this could backfire on them?

Sheesh....

Dr. Mordrid

[Kosh Naranek]

This have been a HOT topic for a while here in Europe.

Reason : The consumers do whatever they can to avoid paying VAT and duty etc.

Why pay more $ than you have to for anything !

I mean : When I can order a DVD in a Canadian company and have it delivered (free of charge) through France, thus avoding paying VAT and duty ( Since it's from one EU country to another ) I would be stupid not to do so ! Since it costs far less than the ones I can buy here.

[Rags]

This is a perfect example of how too much tax can cut into the gathered revenue.

If the taxes were small enough to be insignificant, there wouldn't be the big avoidance of the tax in the first place and more goods would inevitably be purchased.

I hope we don't get that tax-happy over here anytime soon.

Rags

[Novdid]

Don't worry, you won't.

[Indiana]

Yes, these irreal high taxes are plain stupid. Big companies like DaimlerBenz are buying into Chrysler (even if they're not that profitable) and outsourcing some manufacturing parts just to be able to internally "shift" their income to the U.S. (or any other country that don't have taxes that stupidly high). Thus leading to the point that they nearly don't pay any taxes here in Germany, but the lower ones in another country. The same goes for people like Boris Becker, Michael Schumacher, Claudia Schiffer, Steffi Graf,...

I always said keep the taxes reasonable and better get like 20% of their wages than to claim 60+% and get none. But I guess this goes over the brains of most of our politicians - how can 20% be more than 60%?!?!?

[Dr Mordrid]

The same thing goes on in the States too.

In our case the Federal taxes are historically very high plus you have local property taxes on your home (in some states on the contents too!) and State & local income and use taxes. All told it can run 50%+ of total income.

Result:

1. tax avoidance by taking pay off the books

2. a very large underground economy that deals in cash & barter

Terry

[cbman]

True.. If any system is working well... its the cash and barter system.

[Wombat]

We have far too many loop holes and cubbies. I've heard far too many stock traders and investors brag that they pay less taxes than a family just above the poverty line.