this post was submitted on 15 May 2025
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A Boring Dystopia
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Sales taxes are regressive. People who spend more money on services and less on goods are typically wealthier. Sales taxes hit the poor the hardest. Whereas the property tax on a multi unit building is typically a better rate for each family than a single family home.
If you read the article these people tried to abuse a loophole that had kept their propery taxes capped for years and they failed miserably. They tried to keep just enough of the home to avoid the value of the home being reassessed for taxes. But they added an entire second story and that triggered the reassessment. Essentially they thought they could cheat and build more home than they could afford to pay for.
Which country doesn't charge VAT on services?
Some US states don't have sales taxes
These states in the US have zero sales tax: NH, OR, AK, DE, MT
If you hire a nanny do you pay VAT?
Not sure over here in Germany. Plenty of services are exempted from VAT.
The EU has standardized what is tax exempt though. You can read everything which falls under VAT here. The word "service" appears 472 times by the way.