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Forums - General Discussion - How much tax do you Americans pay on Games on average.

VAMatt said:
Also, in most of Europe, the item is being taxed at every level - whenever value is added. In the US, the only tax is on the retail sale. I think the European system is terrible, as it hides the taxes from the consumers. That is totally unfair, and is a big part of the reason taxes are so high in Europe. People don't even realize how much of the purchase price they're paying is going to the government, so that don't push back as much. In the US, it is quite literally spelled out on the receipt, and very easy to understand.

You've never seen a receipt in Europe, have you?



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At the start of last decade Puerto Rico still had a 7% sales tax, which made $59.99 games $64.19.

Though on 2015, the tax has been increased to 11.5%, which made it $66.89 for a newly released physical game.

I can't say how much taxes I pay on games on average right now, since I tend to buy digital now, and I don't have to pay taxes there.

Last edited by Mr_No - on 14 July 2020

John2290 said:
vivster said:

Maybe you should remember where those taxes will go. We do pay more but we also have a higher standard of living than in 3rd world countries like the US.

I'm happy that we pay so much taxes in Europe and as a result are enjoying many conveniences others don't have.

Yes, After Covid I never appreciated how having that slight evil of socailism on the side of a republic/democracy can be so efficient and helpful, as long as it doesn't go further towards communism i'm happy to pay extra if even as insurance for when things go sideways or if it helps others out when they need a lift. I've needed that lift myself and never realised how much more of a lift it is than the US and what we get for giving that bit extra. 

But sure lets not make this political and do that nonsense with the snide remark on the US, that's bait man, c'mon. It also shows you have don't understand the classification of first, second and third world countries actually means.

Pot kettle?



VAMatt said:
Also, in most of Europe, the item is being taxed at every level - whenever value is added. In the US, the only tax is on the retail sale. I think the European system is terrible, as it hides the taxes from the consumers. That is totally unfair, and is a big part of the reason taxes are so high in Europe. People don't even realize how much of the purchase price they're paying is going to the government, so that don't push back as much. In the US, it is quite literally spelled out on the receipt, and very easy to understand.

What are you on about?

Tax isn't hidden, it's clearly displayed on receipts. 20% is the norm (it's 1/5 so it's pretty easy to work out and you don't really even need it displayed), and receipts typically show you the full amount, the tax amount and the without tax amount. You're also shown which items (if any) were tax free, which is mostly relevant for grocery shopping since the majority of food is tax free.

Not sure what you mean by "taxed at every level". I'm guessing you mean as well as stores charging tax to customers, their suppliers also charge them the tax? eh... not really. While technically true, stores then deduct that tax amount from the tax they charged customers. So only the final 20% tax for customers actually gets paid to the government for items that are sold.



VAMatt said:
Also, in most of Europe, the item is being taxed at every level - whenever value is added. In the US, the only tax is on the retail sale. I think the European system is terrible, as it hides the taxes from the consumers. That is totally unfair, and is a big part of the reason taxes are so high in Europe. People don't even realize how much of the purchase price they're paying is going to the government, so that don't push back as much. In the US, it is quite literally spelled out on the receipt, and very easy to understand.

Someone's never been to Europeeeeee

Our listed prices always include tax. When I go do shopping and I pick up cereal and the price on the shelf says £2. I pay exactly £2 for that item.

We never have a case of you click on something to buy and then the price is higher when you actually go to pay. Please research before you comment on these things.l



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ArchangelMadzz said:
VAMatt said:
Also, in most of Europe, the item is being taxed at every level - whenever value is added. In the US, the only tax is on the retail sale. I think the European system is terrible, as it hides the taxes from the consumers. That is totally unfair, and is a big part of the reason taxes are so high in Europe. People don't even realize how much of the purchase price they're paying is going to the government, so that don't push back as much. In the US, it is quite literally spelled out on the receipt, and very easy to understand.

Someone's never been to Europeeeeee

Our listed prices always include tax. When I go do shopping and I pick up cereal and the price on the shelf says £2. I pay exactly £2 for that item.

We never have a case of you click on something to buy and then the price is higher when you actually go to pay. Please research before you comment on these things.l

No his "point" is since the item's price tag only displays the total amount you have to pay, the amount you pay in taxes is hidden within.

Which is of course not a very good point because within each European country there are only about 3 different rates of sales tax for goods: standard, reduced and tax exempt. If you're living in one of those countries you'll likely know what tax rates applies to what type of goods.

And even if you don't, you can see them on the receipt at the end.

Last edited by Barozi - on 14 July 2020

I have seen European receipts.  I have spent a fair amount of time in the EU.  



It looks to me like a lot of you don't even understand how your own tax systems works.

Let's take a video game. In the US, the only tax paid at any point from the time that game starts development to the time it reaches the consumer is the retail sale to that consumer. In much of Europe, the raw materials to make the case are taxed when sold to the manufacturer. The raw materials for the disk are taxed when sold to that manufacturer. The stuff is assemble and that item is taxed when sold to the distributor. Then it is taxed again when sold to the retailer. Taxed a final time when sold to the consumer. Tax is being paid all over the place. And, no, it is not spelled out on the receipt. A whole bunch of that is hidden.



ArchangelMadzz said:
VAMatt said:
Also, in most of Europe, the item is being taxed at every level - whenever value is added. In the US, the only tax is on the retail sale. I think the European system is terrible, as it hides the taxes from the consumers. That is totally unfair, and is a big part of the reason taxes are so high in Europe. People don't even realize how much of the purchase price they're paying is going to the government, so that don't push back as much. In the US, it is quite literally spelled out on the receipt, and very easy to understand.

Someone's never been to Europeeeeee

Our listed prices always include tax. When I go do shopping and I pick up cereal and the price on the shelf says £2. I pay exactly £2 for that item.

We never have a case of you click on something to buy and then the price is higher when you actually go to pay. Please research before you comment on these things.l

You literally said the same thing that I said, but implied that I was wrong.  



sethnintendo said:
Dulfite said:

Aren't your taxes, in general, much higher over there to pay for all the socialized stuff?

It will be a long time, if ever, before USA has those level of taxes collectively. I live in Missouri, which is on the lower side of the tax rate for US I think. People around here want to keep as much of their hard earned money as possible generally (conservative state).

Maybe your state should raise tax some more to invest into your school and driver education system.  Your state has just as bad education and drivers than Texas the state I currently reside in.

Um, nice generalization?