You might picture young guys with too much money lining up for the newest fad to impress their friends. After all, it’s not unusual to see men comparison shopping at electronics retailers. But who is really buying into technology?
Glenn
My guess is that I’ll need to almost double my salary as I’m not paying most taxes here in Germany. Here’s some more info about my situation.
1. Income tax exemption – I don’t pay US or German income taxes. I’m exempt from both. I’m not paying US state income taxes either. This probably saves me at least 30% every year.
2. Sales taxes – I only pay sales taxes when I eat at a restaurant or shop for groceries on the economy (a german grocery store). I mostly shop at the commissary on base…and they sell everything at cost…you can’t get groceries cheaper anywhere else. All other goods (utilities, clothing, cars, electronics, etc) are tax exempt. I prepay for gasoline (current US national average price without sales tax).
Any suggestions?
I’m not a GS employee (civil servant) or in the military. I work for a private contractor. I file the 2555 with my 1040 every year. My taxable income is just below the allowed amount.
I am paying Social Security and Medicare.
I also have 3 dependents. My wife also works for a private contractor and is tax exempt.
I file EXEMPT on my W4. That way taxes are not taken from my paycheck. That’s what we call exempt status here. Call it what you want. We’re given a 3 month extension to file for being overseas.
Jacob
Please be detailed as possible, stick to the question, and please provide sources that have been factchecked.
http://www.washingtonpost.com/wp-dyn/content/article/2007/10/14/AR2007101400993.html
When Immigration Goes Up, Prices Go Down
Aviv Nevo, an economist at Northwestern University in Evanston, Ill., said immigrants (legal & illegal) to the United States — and price-conscious consumers in general — have the same effect: “The broad principle is immigrants change the mix of consumers and will likely change the relative prices of different products.”
While sudden increases in immigration could drive up the cost of housing and retail items where production cannot be ramped up quickly, Nevo said merchants quickly realize there is more profit to be made by decreasing prices on everyday items: “You decrease the price by 10 percent but increase the amount you sell by 200 percent.”
As immigrants are pushed away, prices on everything from diapers to dairy items might go up. (Instead of paying more money for social services, residents will pay more money to Exxon.)
Lach found that new immigrants spend much more time comparison-shopping than natives — perhaps because their economic circumstances force them to look for the best deals, or because they have more discretionary time to compare prices, or because they have not yet developed brand loyalties.
Whatever the reason, they force markets to run more efficiently, and thereby make cheaper prices available for all.
The downward effect on prices that Lach found was most evident for everyday items. Ironically, what the research suggests is that poor, new immigrants — the folks who trigger the most concern among anti-immigration activists — might impose the strongest brake on prices because they are hungriest for good deals.
Gene
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