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by sofixa 416 days ago
> found this unreasonable and confusing until one day I read a conservative argument that this is actually a good thing, because it stops the government from increasing sales tax too much. It constantly reminds residents of how much extra they're paying for sales tax and encourages voting for politicians who will reduce sales tax if it's too high. Okay, it's a reasonable argument, I wasn't super against it anymore

It's not really reasonable. Like, at all.

You can know how much sales tax/VAT is without having to do math every time you pay a bill. For one thing, receipts can and AFAIK always include VAT separately in the EU, with a line for each VAT amount if different (e.g. in France food and alcohol are under different VAT rates, so on the receipt it says you paid X in VAT, of which Y was under 20% for alcohol, Z under 5.5% for food).

You retain the same "power" while being more informed and you're spared quick mental math every time you pay.

2 comments

The question is not whether the person can see the vat. It's whether they are actively confronted with it. I actually found the argument extremely convincing as a euro person. Now I would like to see separate VAT here too.
It's psychology. Just like withholding taxes on salaries before they are paid.
That's more about forcing people to manage their cashflow and not giving them the opportunity to not pay the income tax.
Whatever you say... Some countries even hide the labour tax from the pay slips, meaning most salaried people believe they pay much less in tax than what they actually do.
Which country? This makes no sense. The UK payslip is entirely for the purpose of displaying before tax, deductions, and post-tax salary. It's a PAYE receipt, effectively.
Nordic countries do this. They call it an "employment fee", which is calculated on your salary and does not show up on your pay slip. It is quite sustainable as well. Of course you also have your "normal" income tax, which is withheld from you before payment and shows up on your pay slip. Also quite sustainable.