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The week's question
In December 2024, in the thread "Re: BRK: Why Not XOM?", BreckHutHigh asked the members: "What about the long road trips with kids?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
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Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
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Author: rayvt 🐝  😊 😞
Number: of 21944 
Subject: Re: o/t, debtors and creditors,
Date: 07/09/24 2:24 PM
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VAT is immensely and unneedfully complicated compared to a simple sales tax like US states & cities have.

The benefit (to the government) is that the VAT is invisible to the end purchaser, so they don't really realize that they are paying a HUGE tax.

This tripped up some Aussie friends who were visiting us in the US. They grumbled that when they went to purchase a $9.00 item the cashier told them they had to pay $9.54.

They had to have sales tax explained to them.
That tax was readily visible.

Whereas the same item would have been priced at $11 with VAT, but the 25% tax was buried in the price and thus hidden from view.

There is no Federal sales tax, only state & local sales tax. If the US implemented a VAT, either the states & cities would be cut out and get no tax, or (most likely) people would be paying 25% VAT and 6%-10% sales tax.

To the extent that the government followed the US Constitution (ha!) it would require a new Amendment to allow a Federal VAT. That will never happen.

Non-US Citizens have a hard time grasping the US government structure. Most (all?) other countries the central government is the all-powerful one and the local ones have not much power.
The US is *really* what it says: a set of sovereign states, united. The states are jealous of their sovereignty, and there is no way that three-fourths of the States would ratify such an amendment.
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This community has written 21,448 posts about Berkshire Hathaway. The article-length ones it recommended most:
BRK: Why Not XOM? · 62 recs · 2024
Second quarter comments · 60 recs · 2023
Berkshire's Profit Contributors · 57 recs · 2023
Summary of 2Q 2026 · 54 recs · 2026
3Q Summary · 53 recs · 2024
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