I am expecting a VAT tax to become the solution to raise revenue in the USA- all the talk from both Romney and Obama has been holding the line on tax income tax rates-- so everyone will be blindsided by a VAT tax.
The VAT- please explain all about that tax to us in the USA
by moshe 11 Replies latest social current
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konceptual99
Don't see the difference between VAT and a GST. Many goods and services attract VAT at a typical 20% here in the UK. A VAT registered business pays the VAT it charges to the Government on a quarterly basic but can offset the VAT it has paid on purchases.
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ÁrbolesdeArabia
How did the United States Federal Government fund their opperations pre-16th Admentment? (1913)
Tarriffs, valued-added-taxes, played what type of rule in early United States Colonies? After the Revolutionary War, the war of 1812, income to fund Federal opperations came from what sources until the Civil War Act 1865 (I think)
US has collected revenues longer from types of VATS than income taxes that came and went.
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Phizzy
Let me explain how this visionary Tax works.
A manufacturer produces a paper bag, he sells this to a print company that puts whatever its customers wants on there, the manufacturer charges the print company V.A.T , the print company claims this back fom the Taxman, the print company sells its products to retailers, charging them V.A.T , these retailers claim this back fom the Taxman,the retailers GIVE the paper bag to the final recipient, their customer.
No Tax goes to the Taxman.
What a brilliantly concieved Tax compared to what we had before, where a purchase tax was added at source, and therefore paid to the Taxman even if the item was finally given away.
Of course this former tax was so simple that no work was forthcoming for accountants and admin. staff, and thousands of trees were not cut down.
We introduced V.A.T at the behest of the E.E.C , and probably made it more complicated than even they envisaged, other member States simply re-named ther existing, workable, practical Purchase Tax as V.A.T and got on with life as before.
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moshe
this former tax was so simple that no work was forthcoming for accountants and admin. staff,
yes, I see they cost of collecting this tax, figuring rebates, etc, would be very large- and require a huge new government depatment and thousands of new federal employees--
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Cagefighter
As a small business owner, don't forget the addition cost to the small business owner. My most valuable commodity is time. I value time over money, talent, staff, resources, and even sex.
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stapler99
It is a sales tax that it is collected all the way along the production chain. One benefit of it compared with a sales tax is that you can't get out of it by pretending that a sale isn't a final sale to the customer. Suppose you owned a business and bought computers for your business. With a simple sales tax, you might be able to avoid tax on the computers, but then use them for personal use, and this would be hard for the tax authorities to detect.
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DaCheech
8 years ago I vacationed in a euro country.
I bought my wife a $8,000 necklace and paid close to 20% vat.............. they told me that I could file given papers in the airport to get my VAT back since I was a US citizen.
I filed papers and since I was a good us citizen I told customs about the purchase.
US customs nailed me a coulple of percent and the credit card showed the credit the next month
what a red tape mess.............. how can small business there pay all the people needed to file all this stuff
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RubaDub
I bought my wife a $8,000 necklace and paid close to 20% vat....... I was a good us citizen I told customs about the purchase.
Da Cheech ...
Unless the amount has changed recently, the maximum amount you can bring into the US of purchases abroad is $400 per person ($800 per couple). After that, yes, you pay a duty regardless of how you paid for it or what other taxes you paid. (If I recall there are some higher amounts allowed from the Caribbean and several other places).
Was your question or point about being charged the duty on the 20% that was the VAT ?
Rub a Dub