Thursday, May 29, 2014

Value Added rather than Individual Income Tax

A Value Added Tax is a tax on each step of the production process from raw materials to final goods.  It is akin to a sales tax on suppliers of goods and services through to their eventual consumers.  Each entity in the process pays a share.  Conversely, the individual income tax is a burden that private individuals pay.  It takes a huge army of persons to gather the revenues and a huge amount of time and expense to comply with the individual income tax here in the United States.  A VAT (Value Added Tax) would cost much less to implement yet gather the needed revenues for government to function. 

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