Categorized | Tax

VAT video from Economy in Crisis

Here is a video produced by on the value added tax.


One Response to “VAT video from Economy in Crisis”

  1. Karl Dakin says:

    I am in favor of replacing the chaos of the current income tax with a flat tax, however I have concerns with regard to a value added tax. In concept, any product that is sold is taxed, even if it is not the final product, but merely an intermediary step in a process leading to a final product. Again, in concept, a business is supposed to recoup a value added tax that it has paid on a product if it resells the product. However, I have heard complaints from businesses in other countries who get trapped with payment of a tax - such as a farmer who sells wheat to the bread company that does not collect a tax on food. I am concerned that any tax other than a sales tax on final products will become another way for the government to collect multiple taxes on the same product. (Similar to taxing a corporation for income forcing the product to be priced higher to the consumer).

    In addition, it appears that a value added tax would give an advantage to a large company over small businesses - charging a single tax when the product is sold in final form instead of collecting and paying taxes multiple times as a product moves through production involving several small businesses.

    A flat sales tax on final product - OK - a value added tax on any sale - I am not sure.


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