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MichMan

(16,947 posts)
13. State sales tax of 6% is a lot different than 25%
Sat Feb 21, 2026, 05:09 PM
9 hrs ago

There are differences between a sales tax and VAT. Sales taxes are collected at final sale to the consumer. Business to business transactions are normally exempted.

A VAT is often applied to every stage of production of a product. That is why they are labeled as a "Value Tax"

I was surprised to see that Norway has a 15% VAT on water and sewer service. Imagine paying 15% tax on your municipal water and sewer bill every month.

As a realist, I just can't see how a 25% VAT like Norway has would ever be passed here. Do you think Senior Citizens, after paying into Medicare for 40 years, and becoming eligible at the age of 65, would then vote for someone proposing to make them pay 25% more on every transaction, in exchange for keeping the same health care they already have, plus free college? I would guess that would be a very hard sell.

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