This blog is for Australian, Canadain, U.K. and Western European companies and citizens planning to have a business in the U.S. or business income from U.S. customers.
The United States is courting U.K., Western European, Canadian and Australian citizens to move their businesses. The U.S. doesn’t have a VAT (value-added tax). The absence of this tax gives a 25% increase in a company’s purchasing power (assuming a VAT of 20%) of inventory, machinery, and employees. Business makes more money due to the additional working capital.
Labor unions are weak in the U.S. Employee rights are limited compared to the U.K., the EU, and Australia.
This blog explains how citizens (and their companies) from a tax treaty country are taxed in the U.S.