The US has varied rates on ST based on state (for example, in New Jersey: its somewhere around 6.6%) but that in itself is nowhere close to an actual country (like, Norway imposes 25% VAT on everything nationwide, its included in the final price) but taxes in general are intended to fund roads, education, infrastructure, etc. (this is something all countries have) and taxes are deducted when you receive your paycheck.

The difference is that Norway imposes 25% VAT (whatever the price is, includes tax) for a reason: to maintain high quality standard of living (it explains why you don’t hear stories of medical or student debt as much) as their public services are funded from high taxes imposed towards citizens. While in the US: sales tax is only added upon checkout, but what do you receive from the government in return after paying taxes?

  • emergencyfood@sh.itjust.works
    21·
    19 hours ago

    Sovereign governments collect taxes to destroy money, not to fund things. They can fund things by creating money from thin air; the taxes are to remove money from circulation and control inflation.

    That said, a government can decide what it wants to tax, and how much. Sales taxes hurt economic activity, and fall disproportionately on the poor, so a high sales tax is generally bad. You can either have a higher tax specifically for luxuries, or instead charge a wealth / income tax.