Quote:
Originally Posted by jyl
What do you mean by "only the end user pays" - is that something different from typical sales tax that is tacked on at the register? And what is the difference between sales tax and VAT?
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Just like today, as a business, if I resell the product, there is no sales tax. If the sales tax were included each time the product was sold, business to business, it would be just as bad as the present corporate tax issue. Each time a transaction takes place, a little tax is added.
VAT is exactly this. Everytime "VALUE" is added to a product, sales tax is taken on the added value. The tax creeps into the price of the product, the same way corporate incomes do. And it is a headache for the businesses to have to do VAT accounting of the value add for each item, as it is sold.