Most likely VAT tax, an old tsarist fiscal trick to fleece the poor. Or maybe just the new trick to fleece the poor by creating aspulled link between dominant and vassal imperialist currency, since VAT isn’t constant in EU, it’s from 17% (Luxembourg) to 27% (Hungary)
Yeah, a rare Soviet L, i guess there were troubles in tax collection during NEP, since iirc it was implemented around that point. Still, the context of this tax in socialism and capitalism is kinda different, right now indirect taxes in general are main part of overall regressive tax system (like in Poland poor people pay total around 60% tax, rich one 20-30% and richest who know how much, probably even less). And Poland for example did not had VAT in socialism.
The reason for the VAT (in the USSR it was called a Turnover Tax. They’re the same thing but a VAT does not tax means of production) was how incredibly simple it was to administer. Tax fraud could be kept relatively low for any given level of administration if a VAT was used instead of an income tax, for example. Many modern governments do this today for the same reason.
The USSR was constantly in a struggle to build an effective administration (a good book on this is Origins of the Great Purges ) while fighting what we today would call Bullshit Jobs and local strongmen.
Post-Deng China basically took a hands off approach to local strongmen and corruption skyrocketed but economic growth was heightened. The USSR was trying to mitigate markets (most of which were black markets) to prevent shortages and mismanagement in its planned economy. So the Deng approach was not something it could do. The USSR was much more developed at the time and the intricate web of an economy was more complicated than in China.
Why is the EU price ~100€ more expensive than the US/UK one?
Yen too, even factoring in exchange rates it is about 850 USD in JPY. In terms of relative purchasing power, it is well over 1000 USD.
We designed the damn thing and it is the most expensive here. I can’t imagine they will have all that many domestic sales.
Isn’t the US price before taxes? In the EU they normally show it after taxes
Most likely VAT tax, an old tsarist fiscal trick to fleece the poor. Or maybe just the new trick to fleece the poor by creating aspulled link between dominant and vassal imperialist currency, since VAT isn’t constant in EU, it’s from 17% (Luxembourg) to 27% (Hungary)
Just a reminder that the USSR had a VAT as its main tax revenue for almost its entire existence.
Yeah, a rare Soviet L, i guess there were troubles in tax collection during NEP, since iirc it was implemented around that point. Still, the context of this tax in socialism and capitalism is kinda different, right now indirect taxes in general are main part of overall regressive tax system (like in Poland poor people pay total around 60% tax, rich one 20-30% and richest who know how much, probably even less). And Poland for example did not had VAT in socialism.
The reason for the VAT (in the USSR it was called a Turnover Tax. They’re the same thing but a VAT does not tax means of production) was how incredibly simple it was to administer. Tax fraud could be kept relatively low for any given level of administration if a VAT was used instead of an income tax, for example. Many modern governments do this today for the same reason.
The USSR was constantly in a struggle to build an effective administration (a good book on this is Origins of the Great Purges ) while fighting what we today would call Bullshit Jobs and local strongmen.
Post-Deng China basically took a hands off approach to local strongmen and corruption skyrocketed but economic growth was heightened. The USSR was trying to mitigate markets (most of which were black markets) to prevent shortages and mismanagement in its planned economy. So the Deng approach was not something it could do. The USSR was much more developed at the time and the intricate web of an economy was more complicated than in China.
Yeah
China and Vietnam still has a VAT tax system based off of the Soviet system as well