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VAT tax?

RightinNYC

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I'm curious to hear the prevailing opinions on the pros and cons, as well as the viability, of implementing a VAT tax here in America, either to supplement or replace income taxes.

Any takers?
 

Squawker

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If I knew what a VAT tax was I might. My preference would be a flat tax, or use tax for people earning over 50 or 70 k
 

Pacridge

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Squawker said:
If I knew what a VAT tax was I might. My preference would be a flat tax, or use tax for people earning over 50 or 70 k
Value Added Tax (VAT) is a general consumption tax assessed on the value added to goods and services.

It is a general tax that applies, in principle, to all commercial activities involving the production and distribution of goods and the provision of services. It is a consumption tax because it is borne ultimately by the final consumer. It is not a charge on companies. It is charged as a percentage of price, which means that the actual tax burden is visible at each stage in the production and distribution chain. It is collected fractionally, via a system of deductions whereby taxable persons (i.e., VAT-registered businesses) can deduct from their VAT liability the amount of tax they have paid to other taxable persons on purchases for their business activities.
 

Squawker

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I have a sub-chapter S Corp. Why might I want a VAT instead?
 
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