I enjoy paying sales tax in Pennsylvania. “Enjoy” may be too strong of a word, but I appreciate that the 6% state sales tax is excluded on clothes and food. (That’s why I always try to buy my clothes in PA!)
Here in Romania, the 19% Value Added Tax (the European version of sales tax) was recently raised five percentage points to 24% on all items.
Since Greece’s financial problems earlier this year, Romania and other European nations have been taking steps to cut spending and reduce deficit spending. In May, the Romanian government adopted a plan to cut salaries by 25% for those with public sector jobs (including railway workers, teachers, and health care professionals). In addition, pensions were targeted for a 15% cut. In June, this latter move was ruled unconstitutional by Romanian courts. The government’s solution was to increase sales tax.
This move is an “across the board” move that is being felt by everyone in Romania – from Romanians themselves to foreign tourists. Although I don’t really like the increase in taxes, I am glad that the financial strain is being shared by all (myself included) rather than being placed solely on the shoulders of the retired (as it would have been with a cut in pensions).
Click here to read more about Romania’s financial situation.
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