VAT Value Added Tax

[snafu]

Have you been introduced to the acronym VAT? It is a consumption tax generating huge income for government [AAustralia, Canada,EU, India, Mexico, Nordic, N/Zealand]. They sell the idea as the fairest tax type as it is the same percentage no matter the purchaser, no matter the product/service, no matter the income, no matter where you live.

Basically the federal government adds anywhere from 3-12% tax to everything anyone buys. The bookkeeping is done by the seller, automatically at the till and added seamlessly to any other tax charged. Just take your net income less savings and imagine what they collect if you pay a consumption taxof 5%!

[msduckland]

Originally Posted by snafu

Have you been introduced to the acronym VAT? It is a consumption tax generating huge income for government [AAustralia, Canada,EU, India, Mexico, Nordic, N/Zealand]. They sell the idea as the fairest tax type as it is the same percentage no matter the purchaser, no matter the product/service, no matter the income, no matter where you live.

Basically the federal government adds anywhere from 3-12% tax to everything anyone buys. The bookkeeping is done by the seller, automatically at the till and added seamlessly to any other tax charged. Just take your net income less savings and imagine what they collect if you pay a consumption taxof 5%!

So there is no "income tax"?

[paladin]

No, the VAT does not take the place of income tax - it is in addition to an income tax (at least as it is currently used in countries that I am aware of)..

[Exile]

VAT is assessed here in the Philippines at the rate of 12% and is levied on just about everything including professional fees and even medicines. As for fairness, I would question that, as it's an onerous burden on the poor who can afford it the least. For those who are hard up, the VAT can be a make or break it factor in the ability to be able to buy basic necessities.

[snafu]

I was trying to introduce this new form of income generation and point out that VAT will be presented/sold/ as being 'fair.' I am guessing that this will be how the American government will pay for the bailouts currently in effect and those still to come.

How do you think the trillion plus will be paid off? When? 2011?

[Snodog]

I strongly oppose a VAT as it is regressive.

And they better not even think about doing this for at least 5 years. We raised taxes in the great depression and if we do it again we may get great depression 2.0.

[maat55]

I fully agree with it. I believe the rate should be adjusted differently on basic necessities as compared to luxuries. It would take the government downsizing a great deal which I also would like to see.

No more corporate, income, capital gains among many other regressive taxes. It would turn this country back into the free capitalistic country it was born to be, IMO.