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To: Utmost Certainty

Europeans pay the VAT tax at the cash register same as I currently pay my state sales taxes. Not much difference. Regardless of how the tax is assessed, the end buyer pays both, VAT or sales tax, at the cash register


12 posted on 10/20/2011 2:51:48 AM PDT by dennisw (What good is a used up world and how could it be worth having - - Sting)
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To: dennisw

Yeah, but with a VAT the producer gets hit with a tax at -every- production stage of a good. Further, the VAT is embedded in the sale price—rather than being up front on receipt like a sales tax (which is only paid once, at point of sale).


15 posted on 10/20/2011 2:55:49 AM PDT by Utmost Certainty
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To: dennisw
Europeans pay the VAT tax at the cash register same as I currently pay my state sales taxes. Not much difference. Regardless of how the tax is assessed, the end buyer pays both, VAT or sales tax, at the cash register.

They're not the same thing at all. Using your comparison above, you may as well say a sunrise and sunset are the same, since the sun is at the same point on the horizon.

17 posted on 10/20/2011 2:59:19 AM PDT by edpc (Former Normalcy Bias Victim)
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To: dennisw
There is a huge difference. A value added tax (VAT) is added at each stage of production. A sales tax is only at the final transaction between consumer and retailer.

Manufacturers will not have to pay a 9% tax on the materials they buy to produce a product. Under a VAT they would. Retailers will not have to pay a 9% tax on products they buy to sell to the consumer. Under a VAT they would. Do you consider the sales tax a state has now a VAT? The best thing about the 9-9-9 plan is everything is out in the open and the voter can see the direct impact on the price they pay or their paycheck each week. This will make it politically much harder to raise taxes, because everyone will be affected immediately by any increase in any on the rates.

41 posted on 10/20/2011 4:20:55 AM PDT by Angry_White_Man_Syndrome
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