Living in California...

My new bike recently purchased costs £6799 in the UK. At today's exchange rate = $11,181

US RRP = $7999 + 6% sales tax, where i live = $8478. That's a difference of $2703, for EXACTLY THE SAME bike..

Then I won't get screwed on insurance, since its only $100 for the yr for the equiv of third party fire and theft... In England they'd probably fleece me for 600quid just for TPFT.. Plus my gas is a third of the price to fill up...

Win win for me ! :D

These sort of savings extend to every other materialistic things we buy. Computers, new TV's, cars, well the list just goes on and on... As I said more money in your pocket at the end of the month.
 
Raymond Lin said:
What is the definition of "a completely standard vision package"?
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Vision insurance is separate from health insurance although may be provided by the same insurer so the details are hidden.

A Standard vision insurance package that most people get with their job gives you a free eye exam and vision test a year, along with prescription lenses or contact lenses each year, and a new glasses frame every 2 years. There are caps on some of this, so you cant get designer CK frames for nothing, but you typically get something like $250 for frames which covers all your standard models. So unlike the UK where you go still have to pay for things like glasses or contacts in the US it is typically going to be free if you have vision insurance, which is typically the case for any job that would give you a right to a visa.
 
thedoc46 said:
My new bike recently purchased costs £6799 in the UK. At today's exchange rate = $11,181

US RRP = $7999 + 6% sales tax, where i live = $8478. That's a difference of $2703, for EXACTLY THE SAME bike..

Then I won't get screwed on insurance, since its only $100 for the yr for the equiv of third party fire and theft... In England they'd probably fleece me for 600quid just for TPFT.. Plus my gas is a third of the price to fill up...

Win win for me ! :D

These sort of savings extend to every other materialistic things we buy. Computers, new TV's, cars, well the list just goes on and on... As I said more money in your pocket at the end of the month.
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Wheras other things arent much different, a Range Rover or Mercedes SL like i have are priced directly comparatively, but over there i would have 6.25% sales tax on the purchase on top. Insurance here is really cheap for motor vehicles, my 5L V8 SL Merc is around £350 comprehensive.

The fuel prices are awesome over there, granted :D

I do love the USA, we holiday there sometimes more than once per year, we have even considered moving there very seriously as it would be easy for us (my partner works in Pharma), but i really am not convinced we would really be any better (or worse) off financially.
 
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Jez said:
Wheras other things arent much different, a Range Rover or Mercedes SL like i have are priced directly comparatively, but over there i would have 6.25% sales tax on the purchase on top. Insurance here is really cheap for motor vehicles, my 5L V8 SL Merc is around £350 comprehensive.

The fuel prices are awesome over there, granted :D
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Buy a new one then mate :D
Base Range in States is about 50k all in (on the RR website)
Base Range in the UK is about 71k (on the UK RR website)
Both quoted in pounds.
Saving you about $32k, all depends at which way you look at things I think.
 
I think like you say, depending on where you are moving from and moving to, it might not be a massive change financially. But, an adventure none the less and that's the one reason I would advise you to move the most. If you never do it, you'll always be wondering what it might of been like. You could love it and stay, or hate it and move back :)
 
Oh exactly, i love the USA, its just that at least in the north east it isn't the ubercheap land which some people naively believe it to be when it is mentioned over here. I think our personal situation would be comparable, rather than better, for example :)

Move down to Texas and the story is different i am sure (if you can find a biotech company there!).
 
Jez said:
Wheras other things arent much different, a Range Rover or Mercedes SL like i have are priced directly comparatively, but over there i would have 6.25% sales tax on the purchase on top. Insurance here is really cheap for motor vehicles, my 5L V8 SL Merc is around £350 comprehensive.

The fuel prices are awesome over there, granted :D

I do love the USA, we holiday there sometimes more than once per year, we have even considered moving there very seriously as it would be easy for us (my partner works in Pharma), but i really am not convinced we would really be any better (or worse) off financially.
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In the UK you would add 20% VAT, you just dont see the breakdownand see the sticker price.


You don't pay sales tax on out of state purchases, therefore if you buy all of your gear online then you dont pay tax, simples.


For sales tax rates, look here:
http://en.wikipedia.org/wiki/Sales_taxes_in_the_United_States
Changes state by state. TBH, I have no idea what the Max local Surtax is but I can say in 4 years of living in the US I have never seen that. i assume it is for specific purchases of some kind. You can also see for most states grocceries are exempt. All I can say is when I lived in Californmia I paid 7.5%, when I lived in Oregon I paid 0% and now in virginia I pay 5.3% and all big purchases like TVs I do online and pay 0%.
 
You don't pay VAT on used car sales or any other used item sales, whereas you do pay sales tax on used car sales in the US. I am certainly not being fooled by stickers :p

Re the online shopping thing, are you not breaking the law there, it seems pretty clear? If you buy online out of state then you must pay a 6.25% use tax, i dont understand how you are avoiding all sales taxes by buying online?
http://www.mass.gov/dor/individuals/taxpayer-help-and-resources/tax-guides/salesuse-tax-guide.html

What is the use tax?

The Massachusetts use tax is 6.25 percent of the sales price or rental charge on tangible personal property 1 (including phone and mail order items or items purchased over the Internet) or certain telecommunications services 2 on which no sales tax, or a sales tax rate less than the 6.25 percent Massachusetts rate, was paid and which is to be used, stored or consumed in the Commonwealth. The use tax, unlike the sales tax, generally is paid directly to the Commonwealth by the purchaser.

Example: You purchase furniture for your Massachusetts business or residence from an out-of-state firm and pay no Massachusetts sales tax. You are required to pay the 6.25 percent Massachusetts use tax. The use tax applies because the furniture was not subject to a sales tax in the other state and because it is for use in the Commonwealth.
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You have to pay tax on both cars (private and retail, you cannot even title them with the RMV without paying the tax), and state law says you certainly do have to pay tax for out of state purchases?

What am i missing? :)
 
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Not sure what the ruling is on that one Jez, but I've never paid sales tax purchasing items online. Through Amazon etc you just pay shipping. It's never added and I'm assuming it's one of those items you might be meant to 'declare' what you purchased?
But yes, you never pay sales tax on online purchases.
On the car buying, if it's private you bought it for a lot less than you actually paid for it ;) (know what I mean)
 
You can avoid taxes here by breaking the law, too. I can file a bogus tax return any time i want :p

DP - i believe that you are breaking the law, certainly in MA you would be, and from what i read you are if you live in Virginia, too?

http://www.tax.virginia.gov/site.cfm?alias=ConsumersUseTax

That states that all out of Virginia state purchases exceeding $100 cumulative per year levy a 5% use tax and should be filed using the form provided. Is it really smart to be breaking state law as an ex pat?
 
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Clipsey said:
On the car buying, if it's private you bought it for a lot less than you actually paid for it ;) (know what I mean)
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That would be illegal, and DP suggested you dont pay it at all, which is completely untrue and infact in the case of a car, completely impossible! :)
 
Haha depends which way you look at it. But yes, you do pay sales tax on a used car purchase.
Not on online sales tax, just depends where the physical business you are purchasing from and the State it is being shipped to. Some States you would be hit by sales tax (again depending where the business you are purchasing from sits) and most you would not be :)
 
thedoc46 said:
Try buying a house like this for £400,000 in England.... lol

http://www.glhomes.com/riverstone/new-homes/classic/dubonnet-grande

Aint happening... actually where i use to live 400k lets see what it'll get me..... Hmmm a 2 bed flat... Try raising a family in that !

http://www.rightmove.co.uk/property-for-sale/property-42024805.html

CYA England ! I'm never coming back.
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Yep screw buying a box house here lol.... pay 200k for privilege of living in a box.

Better than say yeah being homeless but when you look at what else you can get for 200k elsewhere you think hmmm.
 
Yeah the use tax is probably the most avoided tax ever which is why the states are trying to change the law to have it charged at the point of sale :p

For anything that requires registration you'll need to pay the use tax there as its the only way they can enforce it but no-one really pays use tax on low value items coming from out of state.
 
Jez said:
You can avoid taxes here by breaking the law, too. I can file a bogus tax return any time i want :p

DP - i believe that you are breaking the law, certainly in MA you would be, and from what i read you are if you live in Virginia, too?

http://www.tax.virginia.gov/site.cfm?alias=ConsumersUseTax

That states that all out of Virginia state purchases exceeding $100 cumulative per year levy a 5% use tax and should be filed using the form provided. Is it really smart to be breaking state law as an ex pat?
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Nope, because the sales tax is removed by the seller since they have no prescence in Virginia.
http://www.nolo.com/legal-encyclopedia/virginia-internet-sales-tax.html
You buy a TV on Amazon, get it shipped here and I pay no tax and dont have to report any. If the seller does have a presence in virginia then they will add the sales tax to the bill.

And you certainly don't add sales tax on a private sale of goods. I just sold off a load of stuff on Craigstlist, due to you really think I am supposed to add sales tax, that is nonsense. Commercial sales is different, if you buy from a second hand store then you will have to pay taxes.


Also just checked general Taxes using my family income. We would owe about 26,000GBP in more tax in the UK, state and SS which will make the difference more like 17-18K more money in our accounts after tax cf. the UK. And that is ignoring things like interest on mortage I can write off.
 
Also low cost insurance here annoys me to no end, the mandatory requirements are pathetic so will have a policy max of $10k or something - which means if you want proper coverage you have to pay extra for being hit by an 'underinsured' driver. :p
 
Jez said:
That would be illegal, and DP suggested you dont pay it at all, which is completely untrue and infact in the case of a car, completely impossible! :)
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A Car is different as you officaly have to register that. The Sales tax applicable will quickly be swalloed up by the difference in road tax. As Is aid, I paid $120 for 4 years, but it is 285GBP for 12 months in the UK!


Bottom line, sales tax is about 0-7% in the US, currently doesnt applyto internet purchases when there is no physical prsecne, and has much the same exclusions as the UK such as food and medicine. The UK has a 20% which you cannot avoid, even when buying online.

There just isn't an argument there.
 
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