Cute aren't they ?
Posted on 03/05/2002 5:28:32 AM PST by It'salmosttolate
Cute aren't they ?
Maybe you have some links to some good info on VAT taxes. I would also like to know your opinion on a VAT tax replacing the Income Tax.
A bit here and there :o)
Definition [ http://www.encyclopedia.com/articles/13330.html ]:
value-added tax
levy imposed on businesses at all levels of production of a good or service, and based on the increase in price, or value, added to the good or service by each level. Because all stages of a value-added tax are ultimately passed on to the consumer in the form of higher prices, it has been described as a hidden sales tax. Originally introduced in France (1954), it is now used by most W European countries, [also Australia, Canada, and Russia.]
The current income/payroll tax structure now in place in the US, and the proposed Armey/Shelby Flat Tax are subtraction method VATs, in that they are a levies imposed on businesses at all levels of production on the basis of Sales - Purchases, and are passed on to the consumer hidden in the price of goods and services
Issue: What Is the Best Way to Collect a Value Added Tax?
A value-added tax (VAT) generally is a tax imposed and collected on the value added at every stage in the production and distribution process of a good or service. Although a VAT may be computed in any of several ways, the amount of value added generally can be thought of as the difference between the value of sales and purchases of a business. (e.g. Revenues - Costs = Taxable Business Income)
Subtraction-Method VAT. Under the subtraction method, value added is measured as the difference between a business's taxable sales and its purchases of taxable goods and services from other businesses. At the end of the reporting period, a rate of tax is applied to this difference in order to determine the tax liability. The subtraction method is similar to the credit-invoice method in that both methods measure value added by comparing sales to purchases that have borne the tax.
The subtraction method differs from the credit-invoice method principally in that the tax rate is applied to a net amount of value added (sales less purchases) rather than to gross sales with credits for tax on gross purchases. A business's tax liability under the credit-invoice method relies on the business's sales records and purchase invoices, while the tax liability under the subtraction method may rely on records that the taxpayer maintains for income tax or financial accounting purposes.
For detailed information of the operation of the Val Added Tax and by extension the current Corporate/Business tax structure(refer to the sections on the Subtraction Method Vat), review:
The Value Added Tax
by Vern Hoven, tax consultant & instructor
Conclusion on Subtraction Method VAT
"Even though the subtraction and credit-invoice methods collect the same amount of tax,, given the same tax rate, most politicians find the subtraction method VAT more attractive than the credit-invoice VAT. As the subtraction method VAT is not separately stated at the cash register, it does not have the appearance of a sales tax. State governments may be more willing to accept a "hidden" subtraction method VAT that does not visibly compete with its retail sales tax base than a credit-invoice VAT that does."
In otherwords, both can be in place at the same time and you would never realise it. That is the significant fault of any corporate tax behind the veil of prices and inflation.
The Honorable James DeMint (R-SC)
United States House of RepresentativesTHURSDAY, APRIL 5, 2001
12:00 noon"In 1996, Congress passed a historic welfare reform law that has dramatically reduced the number of Americans who depend on welfare. In spite of this positive development, Representative DeMint is concerned about the steady growth of a welfare/entitlement state that extends well beyond the poor and is forcing millions of middle income Americans into dependency.
There has been a shift in the relationship between individuals and government, he argues, such that fewer and fewer are paying taxes at the same time that more and more are receiving increasingly generous benefits. If it becomes the case that most voters do not bear a financial burden for this largess, then there will be little to restrain--and significant political incentives to encourage--the continued growth of government. And at that point, DeMint warns, we have reached a major crisis in our democracy."
And appearance is everything in politics.
My opinion on VAT's. The should totally be done away with. How can any electorate exercise "eternal vigilence" over government with blinders on.
VATs/corporate income taxes, are of of the most expensive and burdensome tax systems known. The only benefit of them is to government, in hiding the real burdens from the electorate.
The rest of the story:
Seems the Russians have been learning from the Europeans and our Liberals on how to out fox the electorate:
RUSSIA: PART TWO OF THE RUSSIAN FEDERATION TAX CODE
August 10, 2000
Alexander Chmelev and Evgeny Astakhov
Baker & McKenzie, Moscow Office
Sent by BISNIS, U.S. Department of Commerce, http://www.bisnis.doc.gov
Judith_Robinson@ita.doc.gov, Tel: 202-482-2293. BISNIS sends this report as a courtesy to the U.S. business community. This is not to be construed as endorsement or sponsorship of any information or group.
On August 5, 2000, Russian Federation President Vladimir Putin signed into law four chapters of Part Two of the Russian Federation Tax Code and Federal Law No. 118-FZ ôOn the Implementation of Part Two of the Russian Federation Tax Code and Amendments to Certain Federal Laws on Taxationö (the "Implementation Law"). The chapters of the Tax Code signed into law by the President are Chapter 21 - VAT, Chapter 22 - Excise Taxes, Chapter 23 - Personal Income Tax, and Chapter 24 - Unified Social Tax. These four Chapters and the Implementation Law were officially published in Rossijskaya Gazeta on August 10, 2000, and, with few exceptions, will become effective on January 1, 2001.
The most sweeping changes introduced into the Russian tax system by this new legislation are as follows:
1. VAT (Chapter 21 of the Tax Code)
Although Chapter 21 of the Tax Code does not change VAT rates or the general VAT structure, it contains numerous provisions, which will significantly affect most businesses in Russia. Most notably, Chapter 21 substantially modifies the "place of service" rules, which generally determine whether for VAT purposes a particular transaction has occurred in Russia and is, therefore, subject to Russian VAT. Effective from July 1, 2001, Chapter 21 also will treat export sales to CIS countries in the same way as sales to all other foreign countries, and will exempt them from VAT. On the downside, Chapter 21 will repeal a number of long-standing and important VAT exemptions, including an exemption for license fees for the use of intellectual property (such as, patents, copyrights, and trademarks), and will significantly narrow the VAT exemption for pharmaceuticals.
2. Personal Income Tax (Chapter 23 of the Tax Code)
Chapter 23 of the Tax Code will replace the current progressive tax rates ranging from 12% to 30% with a flat tax rate of 13%. This 13% rate will apply to almost all categories of income earned by individuals who are Russian tax resident. A 30% rate will apply to dividends, and to any Russian source income received by individuals who are not Russian tax resident. A 35% rate will apply to income from gambling, lottery prizes, deemed income from low-interest or interest-free loans, certain insurance payments, and excessive bank interest.
3. Unified Social Tax (Chapter 24 of the Tax Code)
Chapter 24 of the Tax Code will replace the existing employersÆ contributions to four separate social benefit funds (which currently are imposed at an over-all rate of 38.5%) with one unified social tax. This unified social tax will have a regressive tax scale from 35.6% to 2% of an employee's salary with the lowest rate applicable to the portion of an employeeÆs annual salary in excess of 600,000 Rubles (approximately US$22,000 at the current exchange rate). It should be noted that under the Implementation Law, as a transition rule, the lower rate of this tax will be 5% rather than 2% during 2001.
4. Excise Taxes (Chapter 22 of the Tax Code)
As a countermeasure to reducing rates of other federal taxes, Chapter 22 of the Tax Code provides for an increase in excise tax rates for gasoline and other oil products by almost 300%. It also provides for a less dramatic increase of excise tax rates for tobacco products and certain passenger cars.
5. The Implementation Law
a. Turnover Taxes
Effective from January 1, 2001, the Implementation Law repeals the Housing Fund Tax of 1.5% and reduces the Road Users Tax from 2.5% down to 1% and completely repeals the Road Users Tax effective January 1, 2003. These taxes are imposed on gross sales and have been among the most onerous taxes on business in Russia.
b. Regional Tax Concessions
The Implementation Law reconfirms the right of regional authorities to provide tax exemptions for the regional portion of federal taxes retroactive to April 1, 1999. This reconfirmation resolves an issue that arose in 1999 as to whether the regional portion of profits taxes could be reduced pursuant to regional incentive laws.
c. Profits Tax Rate
Apparently in compensation to local budgets for the cancellation of turnover taxes, the Implementation Law authorizes municipal governments to introduce an additional "municipal" profits tax of up to 5% of a taxpayer's taxable profits. Thus the maximum overall profits tax rate may be increased from 30% to 35%.
This report is provided courtesy of the Business Information Service for the Newly Independent States (BISNIS)
Good heavens, stinky.
That's blasphemous.
The Lord sure as heck doesn't endorse the NRST.
"... legislators cannot invent too many devices for subdividing property, only taking care to let their subdivisions go hand in hand with the natural affections of the human mind. The descent of property of every kind therefore to all the children,...But it is not too soon to provide by every possible means that as few as possible shall be without a little portion of land. The small landholders are the most precious part of a state."
-- Thomas Jefferson to James Madison, Oct. 28, 1785 -- PROPERTY AND NATURAL RIGHT
AG,You should be banned from FR for your support of the Communist dream.You are Karl Marx's son.Hypocrite,is the way I see youYou are the peoples worst nightmare.
Ad hominen attack for supper, bad way to start the evening.
I'll continue to support the truth, per the Constitution, and push for replacement of the current tax system for one designed to do the job a proper tax should do in this nation, collect revenues to pay the debt, provide for the common defense and general welfare of the nation(the enumerated powers and function of this Republic).
The Constitution lays out the means to pay for the enumerated functions of the national government in the form of taxation paid out of the product of individuals who benefit from their presense in this nation.
Constitution for the United States of America:
Alexander Hamilton, Federalist #12:
Alexander Hamilton, Federalist #21:
James Madison, Federalist #39:
James Madison, Federalist #45:
James Madison, Elliots Debates Vol 3 p128:
James Wilson, Pennsylvania Ratifying Convention
4 Dec. 1787 Elliot 2:466--68
The Records of the Federal Convention of 1787
(Farrand's Records)
James Mchenry before the Maryland House of Delegates.
Maryland Novr. 29th 1787--
Appendix A, CXLVIa, page 149, S9.
"Convention have also provided against any direct or Capitation Tax but according to an equal proportion among the respective States: This was thought a necessary precaution though it was the idea of every one that government would seldom have recourse to direct Taxation, and that the objects of Commerce would be more than Sufficient to answer the common exigencies of State and should further supplies be necessary, the power of Congress would not be exercised while the respective States would raise those supplies in any other manner more suitable to their own inclinations --"
James Madison, Elliots Debates Vol 3 p128:
What is your rationalization and rebuttal in support for Representation without Taxation under the "Constitution for the United States of America;"
I refuse to be drawn into debate with someone so crass as to invoke Chief's misfortune and memory as some kind of "trump" card.
You are totally disgraceful.
No Willy what is crass is your attempts to distort the truth. And the CHIEF who was a personal friend of mine would never let you get away with it.
It is in his memory and the truth he stood for that I will continut to display his message to you and remind you that it is you who chose to harrass his widow via FRmail because of his oppisition to you.
That sir was crass, and you will not be allowed to for get it. And FR will be reminded of precisely what kind of poster you are.
Actually, it's a tribute to the Great Man who convinced many of us of the wisdom of the NRST.
Chief Negotiator put his life into his advocacy of this battle, and I, for one, respect his memory for it.
Willie, your economics are flawed, and AG has shot down your objections to the NRST.
You like tariffs. Across-the-board tariffs aren't proposed by anybody but you, Buchanan, and kookburgers like Ron Paul.
It is shameful and despicable that you would invoke his memory and misfortune to stifle dissenting opinion.
The Chief is no longer around to defend himself in debate.
Precisely, so why do you continue to throw up the canned comment of yours to which he always responed in a precise manner.
Get a new line Willy. The old one doesn't hack it. And the rebuttal to it never changes for that is the proper rebuttal and there is no other.
This is crass and in extremely poor taste.
...and the founding fathers.
Sad but true.
Hardly I'm right here and quite live so far and willing to debate Willy, that is once you start being more truthful and less the demogogue you have always been.
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