In Europe they add that into the item so it is not necessarily noticed. However, I am sure here they wouldn’t do that and you would end up with federal, state and VAT on the receipt. Is this going DIRECTLY to the debt?????
Look at the groups pushing this. They are not going to use it pay down the Debt, they want it to spend on new “gimme” programs.
I am sure here they wouldnt do that and you would end up with federal, state and VAT on the receipt.
My understanding of the VAT is that its invisible to the purchaser. Each manufacturer along the way pays the value added tax on the product he buys. The next manufacturer pays for his additions. So, company A buys a barrel of oil and refines it to plastic base material. Company B buys the base material and pays the VAT on it and makes a cell-phone case. Company C buys the cell phone case, pays the VAT, and builds a cell phone into it. Company D buys the cell phone, pays the VAT and sells the cell phone at retail. The retail customer sees state and federal taxes only. The various VATs are incorporated into the final taxed price.
Incidentally, a VAT will increase the price which will increase the take on the federal, state and local taxes on that item. As we know, increased prices lead to lower demand. The take on the federal, state and local taxes may drop, prompting the various agencies to raise their taxes to compensate.