Value added Tax, (VAT)

[Supposn]

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

 

[yiostheoy]

The French invented this tax on themselves and it is popular in Europe.

Some US states that tax services have a form of it too.

I do not see any more onerous taxes coming at the Federal or State level in the USA. We are already taxed up to the gills.

What I do see is tax cuts on tax paying corporations and tax hikes on Apple, Microsoft, Walmart, etc. who hide their profits in tax haven countries.

What I don't know is whether Trump and the GOP Congress will give more tax cuts to rich people like "W" did?

Trump wants to spend more money on infrastructure same as Ike did in the 1950's.

So tax cuts like "W" gave out seems like it would be a death knell for Trump in 2020 when he must run for re-election again.

 

[Supposn]

The French invented this tax on themselves and it is popular in Europe.

Some US states that tax services have a form of it too. ...

Which U.S. States have a form of VAT tax? I would prefer that be so. Sales taxes rather income tax returns more accurately reflect the extent of individuals and families' wealth and incomes. Vat is the superior method of sales tax administration.


Yiostheoy, VAT is not a tariff. Nation's collect their VATs for sales and trades of ALL, (domestic or imported) goods or service products imported into. or sold, or traded within their jurisdictions. Many nations have lesser than otherwise income tax rates due to their VATs being a significant portion of their nation's tax revenues.

All governments waive their sales taxes upon their exported products. VAT method of sales tax enables their governments to exactly determine and waive the ENTIRE TAX'S AMOUNT embedded within any particular exported product. That's because sellers or traders reduce the amounts of VAT they collect on their government's behalf, by the VATs they paid. They simply pass only the differences to their governments.
USA does not levy a federal VAT or any other type of federal sales tax. Importers of goods generally pay no federal taxes upon the goods they bring into the USA and our governments cannot levy taxes upon foreign producers. The prices of foreign goods sold in the USA reflect no USA taxes upon producers and there are generally little or no taxes levied upon their products when they're imported into the USA. Additionally, USA wage rates are generally less. USA products are at some price disadvantage within USA's domestic marketplaces.
USA Exports pay their full share of foreign nation's VATs that contribute to those nations' tax revenues. Those nations do not grant USA goods any price advantages over their domestically produced products.

Respectfully, Supposn