Posted on July 5, 2010 - by admin

Sales Tax

Romania just increased it’s sales tax….VAT (value added tax) actually, but the result to consumers is basically the same.   The old tax was 19%.  Yes, nineteen percent…already darn high…especially for those of us from the US!   So, what would you imagine they increased it to?  19.25%?  maybe 20% at a max, right?   Nope.

24%     …a 5% increase, overnight!    That puts Romania in the top 6 around the world for highest sales tax (VAT).  In their company is Denmark (25%), Sweden (25%), Norway (25%), Iceland (25.5%), and Hungary (25%).   I don’t want to be mean, but there is a huge difference between all those other nations and Romania.  Those countries have infrastructure and government services (not to mention accountability) that FAR exceeds that of Romania’s by almost untold amounts.

What’s even more disturbing is that this policy change comes as a result of pressure from the IMF (International Mafia Federation).  So, this is essentially what is happening…  The IMF is telling Romania “fix your problem [budget deficit] or we will not give you any more money.”  Romania wants more from the IMF because they have grown dependent on them.  So Romania says, “tell us what we need to do”.  So, the IMF tells Romania HOW they have to fix the problem….raise your taxes on the average person.  In other words, the IMF is now dictating fiscal policy for a sovereign nation because they hold the purse strings.   So Romania adjusts the tax, which hurts the general public – middle to low income families, so that the IMF can give more money to Romania that will eventuallyend up in the hands of those that are already rich and prosperous…including many of the government officials and their personal projects….i.e. – their own houses and businesses.

Here we have government and multi-lateral ”de-development” agencies at their finest.  The final result will be that a) Romania’s general public suffers MORE, b) Romania does not learn how to actually reform itself into a sustainable society, and c) they become more and more dependent and indebted to the IMF and other like agencies….which those agencies feel is just fine.