Airbus announced that it is going to America. America is the best (VAT) value added tax haven in the World. Airbus is joining BMW and Mercedes in California.
The value added tax (VAT) is an abusive tax. It destroys a business’s working capital preventing growth, innovation, and jobs. Virgin Air’s SpaceShip is ready to launch from New Mexico.
The UK and EU VAT is helping the USA boom. Why is Virgin Air building its Spaceships the U.S? Well, the VAT adds to the cost of supplies and parts. Plus, the VAT is paid with after income tax working capital (money). Paying with after-tax dollars increases the VAT to 30%. If you are spending a $1Billion, you save $300 million over the cost in the U.K. or the EU.
- Many people wonder why the VAT destroys growth. If you need to purchase $1,000 inventory in the US, you will need to make $1,400 and pay income tax of $400. In the UK and the EU, you will need $1,700 to buy the $1,000 inventory. If the VAT is $200, the after income tax cost is $1,200 (compared to $1,000 in the U.S).
- The EU business will need to earn $1,700 paying income tax of $500 to have the after income tax money of $1,200. If you are Airbus or Virgin Air and you are spending billions of dollars paying the VAT.
- The Financial Times of London reported that the VAT had destroyed what remains of Greek Small Business. The EU announce $2 trillion in bailouts to save Greece and Spain is looking for the same.
- England is not safe from VAT tax haven USA. Virgin Air’s SpaceShip I and II were built in California (more on this link). Yes, anti-business state California is better than the U.K.
- Virgin Atlantic’s Space Ship II has joined Space Ship I in California. The VAT destroys business like no other tax; it seizes working capital that is required for growth. What costs $1.30 billion in the U.K. costs $1 billion in California.
- If your business needs inventory, you can simply buy more of it in the United States. More inventories mean more profits. More profits allow for more growth.
Want to take your tax planning to the next level, then contact me, Brian Dooley, CPA, MBT at [email protected]