The difference between VAT and sales tax.

Post #382,693 by Another Scott 10/25/13 12:48:45 PM Reply	The difference between VAT and sales tax. VAT is the tax on the added value before it moves to the next step in the chain. Sales tax is a tax on the final sales price. They're different beasts and the nominal percentages to raise the same amount of money would be different. http://www.economist...012/05/tax-policy In a recent post at the New York Times' Economix blog, Mr Bartlett discusses at greater length the appeal of circumventing a pointless political foofaraw over each and every nickel-and-dime tax expenditure by instead exempting those who earn less than $100,000 from all income tax, in exchange for a VAT: Prof. Michael Graetz of Columbia Law School has proposed what I believe is a MacArthur-like solution to tax reform. He would abolish the income tax for the vast bulk of Americans and replace the revenue with a 12.5 percent value-added tax. People would pay their taxes when they buy things and wouldn't need to worry about keeping records or filing tax returns at all.The brilliance of the Graetz plan is that no tax expenditures need to be repealed. He would simply give every family a tax exemption of $100,000, which would eliminate the income tax for 90 percent of those now filing returns. For lower-income people who currently have no net income tax burden or who earn an income tax credit, Professor Graetz proposes a rebate (too complex in its details to spell out here). The devil, as always, is in the details. I would not support totally abolishing the personal income, corporate income, and inheritance taxes. Accumulation of vast wealth for generations, and companies sitting on tens or hundreds of billions of dollars, are both bad for the country and her people. I would have to be convinced that a 10-15% VAT was a good idea (e.g. lots of poor people need cars to get to work, and a sudden 10-15% price increase would hurt them). YMMV. Cheers, Scott.
Post #382,694 by mmoffitt 10/25/13 1:09:13 PM Reply	We need to tax unearned income at the same rate as earned. For a fair tax code to exist, this bullshit about taxing money made from money at a lower rate than money made from sweat has got to end.
Post #382,695 by Another Scott 10/25/13 1:12:39 PM Reply	Agreed.
Post #382,699 by folkert 10/25/13 4:48:00 PM Reply	Damned Skippy! -- greg@gregfolkert.net "No snowflake in an avalanche ever feels responsible." --Stanislaw Jerzy Lec
Post #382,700 by boxley 10/25/13 5:24:27 PM Reply	agreed, it's all earned Any opinions expressed by me are mine alone, posted from my home computer, on my own time as a free American and do not reflect the opinions of any person or company that I have had professional relations with in the past 58 years. meep
Post #382,706 by Ashton 10/25/13 5:36:31 PM Reply	There you Go Again with the snide self-cancelling phrases Now you want to desecrate the simple-valuez description of *earned!* No Sale: when "earned" means: a few keystrokes at a remote terminal scrapes-off a $M here and there; (I'm sure you have other John Galtean obscurantism to go with this one, but lay-on Mac~~duff~~Box..)
Post #382,708 by boxley 10/25/13 5:44:09 PM Reply	Re: There you Go Again with the snide self-cancelling phrase when "earned" means: a few keystrokes at a remote terminal scrapes-off a $M here and there; you can call it anything you want as long as it is taxed at the same rate as my paltry swipes at a keyboard Any opinions expressed by me are mine alone, posted from my home computer, on my own time as a free American and do not reflect the opinions of any person or company that I have had professional relations with in the past 58 years. meep
Post #382,715 by Ashton 10/25/13 6:16:55 PM Reply	There's Shrub-grade mechanical-stubbornness.. for All t'see.
Post #382,704 by boxley 10/25/13 5:31:15 PM Reply	oh, you mean like this? 10% vat Joe sells you $100 goods for $110 as original supplier with $10 going to the tax man you sell same goods to Bawb for $220 with $20 going to the tax man Bawb sells for $330 with $30 going to the tax man so far tax man has picked pockets for 60% of the net cost, how cool is that? Any opinions expressed by me are mine alone, posted from my home computer, on my own time as a free American and do not reflect the opinions of any person or company that I have had professional relations with in the past 58 years. meep
Post #382,710 by drook 10/25/13 6:10:53 PM 10/25/13 6:11:30 PM Reply	That's not how it works, do your homework -- Drew Edited by drook Oct. 25, 2013, 06:11:30 PM EDT Expand All History
Post #382,735 by folkert 10/26/13 3:30:06 AM Reply	Why... when you will gladly will... Or someone else here will. He "knows how it works" and doesn't give a damn how it really works. He is just being himself. -- greg@gregfolkert.net "No snowflake in an avalanche ever feels responsible." --Stanislaw Jerzy Lec

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