this post was submitted on 17 Aug 2023
59 points (86.4% liked)
World News
31446 readers
753 users here now
News from around the world!
Rules:
-
Please only post links to actual news sources, no tabloid sites, etc
-
No NSFW content
-
No hate speech, bigotry, propaganda, etc
founded 4 years ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
You can thank our libertarian minister of finance and his debt-ceiling fetish for that. He's also the one who demanded that our 100 billion fond for the armed forces has to include VAT tax, which effectively lowers it to 84 billion.
He's also the guy who likes to protect the more than 20 billion in subsidies for fossil fuels or the car industry, yet wants to cut social services by 20 billion.
Why shouldn't it include VAT?
because if the government spends 100€ on whatever, it gets 19€ back.
So it only actually spent 81€.
Careful: VAT is calculated additionally to the price of the goods bought. So when the government buys goods for 84€, an additional +19% VAT is slapped on top of it, which comes out to 16€, for a final payment of 100€. So only when the government ultimately pays 119€ on something, it gets 19€ back.