Comments by "looseycanon" (@looseycanon) on "The Plan That Nearly Collapsed the UK - VisualEconomik EN" video.

  1. There is a problem with VAT and other consumption taxes, when you have large population centers near a border. Take map of Czech Republic. Cities like Cheb, Ústí nad Labem, Liberec, Opava or the entire Ostrava metropolitan area sit so close to border, that a trip accross can all expenses included be less costly than buying in the city itself, especially if there were common currency in both countries, as that would remove volatility of exchange rate from the calculation. As there are no international payment fees on cards in Europe, you can imagime, just how many people make occasional trips to Poland or even Germany for durables. Then there are property taxes, which have the problem of trickling down onto the tenants, which tend to be the poorer members of society, so it hit's them disproportionately more, because the landlord can move ideally to a border town of a country with high consumption tax and low property tax. This works even domestically in case of Czech Republic, because certain cities have tax multipliers associated with them (spa cities, the capitol and based on population), meaning a man can make this multiplier differential rather big, if he choses to live in a village near a city and doesn't need to make trips to the city too often, or if he makes them for other reasons (sunk costs). And then you have the overall tax burden, which is also a problem. on cards in Europe, you can imagime, just how many people make occasional trips to Poland or even Germany for durables and why there was a train service from.
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