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Blues Man, Regarding value added tax, you're entirely wrong. Refer to (19) Value added Tax, (VAT) | US Message Board ? Political Discussion ForumI don't see how a tax on everything you buy reduces anyone's tax burden.
And VAT taxes are insidious as they add a tax to every part of the production process not just the end sale.
Value Added Tax, (i.e. VAT) compared to prior conventional sales tax methods.
Unlike any other sales tax method, VAT does not any manner increase prices by additionally taxing the sales taxes levied within previous sales transactions. After the first transaction link of a chain of transactions, given the same tax rate, numbers of prior commercial transactions, and prices for each transaction (excluding the transaction taxes), the total government revenue is less for VAT and greater for the other conventional sales tax methods. That’s due to not taxing the additional costs of prior Vat taxes.
Commercial entities provide to the government and to the purchasers, their VAT paper work that is very similar to what they would provide within other (older) sales tax methods but they subtract the VAT they paid from the VAT they collected and pass only the difference onto the government.
This business-friendly method is particularly beneficial to small businesses because cash flow is among their major problems. Purchasers do not pay VATs upon VATs imbedded within each prior transaction link within a chain of VAT transactions.
Under a VAT system commercial purchasers do not request that their purchases not be documented or the full prices not be revealed (because they deduct the VAT they paid from the VAT they collected (on behalf of the government). VAT tax evasion is more difficult, riskier and less profitable (than evading the older conventional sales tax method). This increases government’s revenues and reduces enforcement expenses.
I’m aware of advantages to VAT compared to other sales tax methods but no disadvantages. Many nations have enacted VAT and/or transformed their prior sales tax method to a VAT but I’m unaware of any nation transforming their VAT to the older conventional sales tax method.
Respectfully, Supposn