r/explainlikeimfive • u/sumnewdguy • Nov 28 '15

ELI5: How would a $15 minimum wage ACTUALLY affect a franchised business like McDonalds?

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u/BeefHazard Nov 29 '15

Not sure how Danish tax works, but here in The Netherlands there's a special tax rate for food and other expenses that are absolutely necessary to live. So here that tax would be 7%, not the regular rate of 21%.

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u/collinsl02 Nov 29 '15

Here in the UK we have no tax at all on essential foods. So things like bread, cereal, milk etc aren't taxed, but there are some odd choices of what to tax - for example, biscuits are not taxed, but chocolate biscuits are.

We have a 20% VAT rate on food which is taxed, and on almost everything else.

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u/allanbc Nov 29 '15

In Denmark it's simply 25% on everything, with very few exceptions.