Edit post

Edit your reply below.

Post Body
Enter your post below.
[quote user="MisterBeasley"][Value Added Tax (VAT) structures add taxes at each step, from raw materials to delivery, which all get folded into the price of the products.  Lacking these "hidden" taxes in the US, we can manufacture things cheaper here and thus sell them for less.  Of course, we have higher labor costs than China, so it's cheaper still to make stuff on the other side of the Pacific.[/quote] VAT does not add to the cost of product at each step - it is a sales tax, which the end customer has to bear fully. Though all purchases are subject to VAT, the tax paid on raw material or semi-finished products can be reclaimed. Labour cost may be a different issue, but it is a less important issue as most people think - productivity is the name of the game! The main reason for those high prices we see in Europe is greed!
Tags (Optional)
Tags are keywords that get attached to your post. They are used to categorize your submission and make it easier to search for. To add tags to your post type a tag into the box below and click the "Add Tag" button.
Add Tag

Update Reply

Login, or register today to interact in our online community, comment on articles, receive our newsletter, manage your account online and more!

Model Railroader Newsletter See all

Sign up for our FREE e-newsletter and get model railroad news in your inbox!