# I have seen better on WB



## JR Parks (Oct 5, 2017)

Just had to show these bowls in a shop window in Vienna Austria. Nice bowls for sure but the prices were equally nice- look under bowl for prices in euros.

Reactions: Thank You! 1


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## Tony (Oct 5, 2017)

HOLY CRAP!!!!!!!!!!!!

Reactions: Like 1


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## Mike1950 (Oct 5, 2017)

Yikes- maybe I better get the dust off the lathe....

Reactions: Agree 1 | Funny 3


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## Bigdrowdy1 (Oct 5, 2017)

Mike1950 said:


> Yikes- maybe I better get the dust off the lathe....



Now that will be the day. I think we saw a picture of it several years back. Look at all the shelf space you would loose!! Besides the drive belts have probably dry rotted 3 decades ago!!



Rodney

Reactions: Agree 1 | Funny 6


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## barry richardson (Oct 5, 2017)

Nice work if ya can get it..... but I imagine only a fraction of that price will go to the actual craftsman...

Reactions: Agree 2 | Great Post 1


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## Wilson's Woodworking (Oct 5, 2017)

HOLLY COW!!!!!!!!!!!!
Just checked the exchange rate and 1 euros is worth 1.17 dollars! 
I must be missing the decimal in there some where.


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## Mike1950 (Oct 5, 2017)

barry richardson said:


> Nice work if ya can get it..... but I imagine only a fraction of that price will go to the actual craftsman...


.


barry richardson said:


> Nice work if ya can get it..... but I imagine only a fraction of that price will go to the actual craftsman...


With VAT tax added at every level it is government that is rolling in the bucks, or euros


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## Tony (Oct 5, 2017)

When I see things like that, I always wonder if anybody pays those outrageous prices. Whenever we go to Buc-cees I look at the cutting boards that aren't any better than mine but cost 3 times what I sell them for. Tony

Reactions: Agree 1


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## duncsuss (Oct 5, 2017)

Mike1950 said:


> With VAT tax added at every level it is government that is rolling in the bucks, or euros



The standard rate of VAT in Austria is 20% -- therefore the government ends up with 20% of the final sale price.

At every intermediate step in the production process, the vendor deducts the VAT they paid on the materials they purchased from the VAT they collect on the sale of product. The difference between those two is sent to the government. (Effectively, the government collects the sales tax incrementally as the value of the item increases.)


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## Mike1950 (Oct 5, 2017)

duncsuss said:


> The standard rate of VAT in Austria is 20% -- therefore the government ends up with 20% of the final sale price.
> 
> At every intermediate step in the production process, the vendor deducts the VAT they paid on the materials they purchased from the VAT they collect on the sale of product. The difference between those two is sent to the government. (Effectively, the government collects the sales tax incrementally as the value of the item increases.)


my understanding of VAT is every level the government adds 20%


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## duncsuss (Oct 5, 2017)

Mike1950 said:


> my understanding of VAT is every level the government adds 20%


You've been misinformed. Tax is computed at every level, but the tax already paid is deducted from the tax computed at this level -- meaning that the tax is a percentage of the value added at each level.

For example: 

Let's say that I cut down a tree and sell the trunk to Alan for $50. I add 20% ($10) VAT to that price, meaning the purchaser pays $60, and I send the $10 tax collected to the government.

Alan mills the trunk into bowl blanks and sells them to Bessie the Bowlmaker for $200, plus $40 VAT. Alan sends $30 to the government, because he has a $10 VAT credit from when he bought the tree trunk. The value he added was $150 (his sale price of $200 less his cost of $50) so the tax due is $30.

Bessie turns the blanks into bowls and sells them for $1000, plus $200 VAT. She sends $200 minus the $40 VAT credit (from when she bought the blanks) to the government. Which is the same as saying the Value she Added is $1000 less $200 = $800, so the Value Added Tax is 20% of that = $160.

As I said -- the government only gets 20% of the FINAL sale price. All the intermediate steps charge tax on the Value Added (which is why it's called Value Added Tax).

Reactions: Like 1 | Informative 3


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## Mike1950 (Oct 6, 2017)

duncsuss said:


> You've been misinformed. Tax is computed at every level, but the tax already paid is deducted from the tax computed at this level -- meaning that the tax is a percentage of the value added at each level.
> 
> For example:
> 
> ...



Thanks I did not know how it worked. But austria is quite heavily taxed. 25% if you make approx. $12,000-$20,000 after that everything you buy has had 16 or 20% added to it. Looks like bowls above get purchased by tourists...
In Austria, the income tax for individuals in 2005 was progressively set up to 50% on a progressive schedule:[1]

*Percentage from gross salary* *Salary range*
0% 0 - €11,000
25% €11,001 - €18,000
35% €18,001 - €31,000
42% €31,001 - €60,000
48% €60,001 - €90,000
50% €90,001 - €1,000,000
55% Over €1,000,000
Married people are taxed separately. Payroll withholding tax is in effect.

Taxes are levied on corporations (25% on distributed and undistributed profits), trade income, real estate, inheritance, dividends, gifts, and several miscellaneous services and properties.

A value-added tax was introduced January 1, 1973 at a basic rate of 16%. The standard rate of 20% is valid since 1984 whilst the reduced rate of 13% (since 1.1.2016) is applied to basic foodstuffs, agricultural products, rents, tourism, and entertainment; banking transactions are exempt and exports are untaxed.

Capital gains and dividend income are taxed at 25% and are withheld at source. There is no wealth tax. In accordance with EU guidelines, tax exemptions and reductions are included in incentive packages for investment in economically depressed and underdeveloped areas along Austria’s eastern border.

The VAT (value-added tax) is in 20% a standard rate.[1]


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## duncsuss (Oct 6, 2017)

@Mike1950 I wasn't commenting on the level of taxation in Austria, just detailing the mechanics of VAT as it seemed you believed the tax rate was applied to every transaction in the chain from raw material to end product.

I don't have a problem with high taxation when the benefits are a good education system that is affordable by all, health services that cost little-to-nothing at the point of delivery, roads and bridges, and a social safety net.

Reactions: Like 2


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## Mike1950 (Oct 6, 2017)

duncsuss said:


> @Mike1950 I wasn't commenting on the level of taxation in Austria, just detailing the mechanics of VAT as it seemed you believed the tax rate was applied to every transaction in the chain from raw material to end product.
> 
> I don't have a problem with high taxation when the benefits are a good education system that is affordable by all, health services that cost little-to-nothing at the point of delivery, roads and bridges, and a social safety net.



I appreciate the lesson. we do not agree on rest of it... but that is nothing new. Ex. we have spent 17 trillion give or take a few 100 billion since we started war on poverty in 1964. we are going backwards. Money is not the solution. JMO

Reactions: Like 1


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## Mike1950 (Oct 6, 2017)

duncsuss said:


> @Mike1950 I wasn't commenting on the level of taxation in Austria, just detailing the mechanics of VAT as it seemed you believed the tax rate was applied to every transaction in the chain from raw material to end product.
> 
> I don't have a problem with high taxation when the benefits are a good education system that is affordable by all, health services that cost little-to-nothing at the point of delivery, roads and bridges, and a social safety net.


and when you tax a person with income of $20,000 at almost 50% they need a safety net. That is half their income. and you take some one that makes $50,000 at 42%+ 20% Vat and they only get a little over $20K Net.


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## duncsuss (Oct 6, 2017)

Mike1950 said:


> and when you tax a person with income of $20,000 at almost 50% they need a safety net. That is half their income. and you take some one that makes $50,000 at 42%+ 20% Vat and they only get a little over $20K Net.



True, but ... the health insurance plan I get through my work costs nearly $25,000 per year. (Granted the company pays 90% of that, but it is effectively a tax on my employer.) It's a good plan -- I only have to pay a small amount when I go to the doctor or get a prescription filled -- but that coverage would be paid for out of taxes in the European countries I've lived in.

Reactions: Like 1


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## Mike1950 (Oct 6, 2017)

duncsuss said:


> True, but ... the health insurance plan I get through my work costs nearly $25,000 per year. (Granted the company pays 90% of that, but it is effectively a tax on my employer.) It's a good plan -- I only have to pay a small amount when I go to the doctor or get a prescription filled -- but that coverage would be paid for out of taxes in the European countries I've lived in.


I paid my own and employees insurance for 25 years. so I realize how much prices have escalated for last 30. you have to add that benefit to your wage to get your true wage. Median wage in austria is $30K approx. with the government taking 55% of it- Austrians need plenty of free stuff or they would not make it... But I will admit having been self-employed over half my life-my opinion is a little (LOT) jaded. The government is a cumbersome money eating machine. Education- in our state it always needs money- no matter what there is not enough - administration almost takes 40% of the education budget..... I hated working on School projects- worst -slowest paying clients that I had. decisions were made at a glacial pace. Ex. multiple meetings with 5 or more high paid administrators over a tree that was in the way of a 400 sq ft project. They had failed to have their 2 High paid arborists move it in spring. so we had multiple long meetings about How I had to work around tree- not hurt it or get it dirty  even though tree was not on prints all at my cost of course. In the end my original solution to problem was used- 5 min. and a sawzal...... Government does not sweat-bleed or work hard for it's money so it becomes inefficient in use of same..... Like I said above -jaded....

Reactions: Like 2


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## Robert Baccus (Oct 8, 2017)

Roger that Mike.


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