Discussion in '2005 - 2014 S-197 Mustang -General/Talk-' started by Aftrbrnr, May 11, 2012.
Meanwhile, in Canada. . .
The exchange rate is basically 1 to 1 so I don't know if they have some weird taxes or not. I know Chevy gets the equivalent of almost $200k for the ZR1 in Britain, don't know how much of that is taxes. Even at $80k it does not have too much performance competition though.
whats VAT tax?
Value added Tax...a gov't adds a tax to imported goods. The USA does not have one yet but recently there has been talk of it.
It is not a tax on imported goods only, it is a tax that is collected by the government (not here yet) every time something gains value through a production process. So as a raw material is processed into something more valuable, like iron ore into steel, then steel into sheet metal, then sheet metal into a particular part, etc. The iron would be taxed every time it gains value until it is sold in its final retail form. Look it up on wikipedia, it is too complicated to explain here.
I just read about it. So as I understand it in Canada if you collect horse $hit and sell it as fertilize, the customer pays sales tax, and the $hit collector pays a tax on the difference in value between the plain horse crap and fertilizer. Unless it were used as a way to eliminate federal sales tax I think any U.S. politician who voted for such a tax would have a tough time keeping their jobs at the next election.
Obama proposed that a VAT tax my be a good idea....http://www.cbsnews.com/2100-250_162-6420140.html
I don't think there are many taxes that he thinks are a bad idea.