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To: taildragger
A Value Added Tax is a method by which all intermediate steps in producing a product is taxed.

Take Campbells Tomatoe Soup.

The farmer sells the tomatoes to a Campbells and the value of the tomatoes is taxed.

The mining company that Sells the the aluminum ore to Reynolds pays a tax for extracting the ore.

Reynolds smelts the ore and makes aluminum sheets and adds a tax when it sells the aluminum to a can manufacturer.

The cans are made and a tax is added to the can which is sold to Campbells.

A tree is harvested and sold to the lumber mill and a tax is added.

The lumber is made into paper and a tax is added when the paper is sold to the printing factory,

A label is made using ink which was taxed and it is sold to Campbells and a tax is added.

And so it goes on and on. many layers of production and the tax is collected at each step. Now your Campbells soup is sold and a sales tax is added.

Government slurpping at every level!

15 posted on 03/31/2010 9:27:57 AM PDT by Young Werther ("Quar cum ita sunt" Since these things are so!)
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To: Young Werther

And can the “1099” become the vehicle from which they get to slurp at the trough? That is the million dollar question I am asking....


16 posted on 03/31/2010 9:29:40 AM PDT by taildragger (Palin/Mulally 2012)
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To: Young Werther
You forgot the last step.

You buy a can of Tomato soup and it costs $5.

20 posted on 03/31/2010 10:22:03 AM PDT by USNBandit (sarcasm engaged at all times)
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To: Young Werther

You forgot:

Now your Campbell’s Soup costs $6.00


29 posted on 03/31/2010 12:13:04 PM PDT by willyd (Reducing Taxes Reduces our Carbon Footprint)
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