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US states at most collect sales taxes at a rate about 1/2 of EU VAT.

Small point about this comparison. We pay about as much tax to the State and local government entities as to the Federal Govt.  Sales tax (5%) is not the largest State tax. In Virginia we also pay a tax on income, a large estate tax, a tax on other personal property, and various other lesser taxes.  The States also have their independent budgets and fiscal plans. I think, as an aside, that California is/was the world's fifth largest economy or some such. It's budget and government structure reflected that fact.

I can swear there ain't no heaven but I pray there ain't no hell. _ Blood Sweat & Tears

by Gringo (stargazing camel at aoldotcom) on Sat Mar 21st, 2009 at 03:18:38 PM EST
[ Parent ]
I remember when I was in California sales tax was about 8% and state income tax was paltry compared with Federal income tax. But of course, each state is different.

Most economists teach a theoretical framework that has been shown to be fundamentally useless. -- James K. Galbraith
by Carrie (migeru at eurotrib dot com) on Sun Mar 22nd, 2009 at 04:15:59 AM EST
[ Parent ]
You are right, each State has its own taxing laws and not all States have an income tax (most do though).  However, they are all fairly artful in extracting taxes from one source or another.  Some depend on "natural" resources to provide most of their revenue, like Texas (maybe oil) and Florida (probably tourism), but they are not dependent on the Federal government for funding many of their services to citizens.
This site
shows state taxes for 2007 by state as a percentage of income.  Guess which State collects the higher tax by far (Alaska - shame shame Ms Palin). I don't know what is included in this "total" of taxes because Virginia only ranks 39th with 6.3%.  I think this must be income tax and sales tax alone because property and other taxes we pay probably double this percentage.

I can swear there ain't no heaven but I pray there ain't no hell. _ Blood Sweat & Tears
by Gringo (stargazing camel at aoldotcom) on Sun Mar 22nd, 2009 at 10:02:30 PM EST
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