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Welcome to Germany vs USA! Today we want to talk about the sales tax.
So today we decided to talk about the sales
tax in the US. What would that be in German? - "Die Mehrwertsteuer" I think. - Mehrwertsteuer?
- So that's sales tax in German. So if you were to go up to a grocery store and buy a
coke and - in the US, right? - in the US\'85and it's a Dollar. So you walk up, all excited
you got this coke for a Dollar. You put it on the cash register - it's not gonna cost
a Dollar. It depends where you are but it's gonna cost a little more than that. In Mississippi
it would be one Dollar and 7 cents cause we have a 7% sales tax. California, different
places like that, it's going to be higher. It even varies from county to city on how
much it can be. Which, I think, is a big surprise to Germans when you are first coming to the
country. Yeah, I mean it's always just small amounts but the price tag said one Dollar.
Why do I have to pay one Dollar seven now? Of course it's just the additional tax. Which
is smart if you think about the businesses cause they can basically advertise a lower
price and sell for the higher price. It's going to be taxes so they are not making money
off that. It's weird. That is one thing people love here, too. You go to a certain fast food
place or a certain restaurant and they'll have all the taxes included. You just feel
like you are getting the biggest bargain cause you'll be like "Oh this sandwich is 5 Bucks
and you go up and you can actually give them a five. - You don't have to pay more. - Right,
and you just feel so good about it. - Why is that with fast food? - Not all fast food
restaurants, just some of them. It's just a selling point. - You don't have to pay taxes.
- No, you still gotta pay but they just already have it included. You don't have to calculate
it in. So you can walk up there with a whole bunch of change and actually give them that
exact change since you know it beforehand. That's why American are really bad when they
go to Germany, they don't know how to handle the whole change. It's like there is coins\'85just
give it away. - I have mentioned before on the show, when I left Germany just how many
Euro coins I always have cause I just freak out. They are like "bla bla bla". I'm like
"uah just take it". - In Germany the sales tax oder die Mehrwertsteuer was raised, I
think in 2007, from 17% to 19%. As far as I know, that is all over Germany. There is
a different tax though for the basic food like butter and milk and all that stuff. In
German "Grundnahrungsmittel" (staple food). I think that is only 7%, if I am right. - But
you never would have to pay additional, right? - No, the price that you see in the grocery
store is the final price that you will actually pay at the cash register. Anyway, we just
wanted to get that out there cause it's one of those things, little differences in the
everyday life when you are going shopping. That was the show on sales tax. - Don't let
it surprise you! - Bye - Y'all take it easy.}