The FAIRTAX is not a VAT. It is a national retail sales tax.
(See: Herman Cain/Neil Boortz)
A VAT is not desirable as it taxes every step of production from raw materials on up the scale. (wholesale) Making products very expensive.
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A VAT is not desirable as it taxes every step of production from raw materials on up the scale. (wholesale) Making products very expensive.
I agree on the VAT tax. In that system raw materials production shouldn’t be taxed. I wouldn’t mind seeing a system where they put one tax on a finished manufactured product, that’s it, leave all the materials alone which lead to that production.
Like an automobile, one tax when it’s done. Also a higher tax on cars manufactured outside the US to help our industries compete better. Then you only have one tax priced in to the completed product for the consumer to pay.
There would also be less tax enforcement required. This is assuming the income tax has been done away with. People pay taxes as they buy the finished products. I’ve always wondered why we couldn’t go to that type of system.
thanx for the explanation but I don’t see the difference.
Home Depot buys wood from wherever - does it get FAIRTAXED ?
I buy wood from Home Depot - does it get FAIRTAXED ?
I make birdhouses out of the wood and sell it to Home Depot - does it get FAIRTAXED?
Home Depot sells the birdhouses - does it Get FAIRTAXED?