Comments on: Value Added Tax (VAT):  The Pros and Cons http://weakonomics.com/2009/03/26/value-added-tax-vat-%c2%a0the-pros-and-cons/ Everything That's Wrong With You And Your Money Wed, 08 Feb 2012 22:32:00 +0000 hourly 1 http://wordpress.org/?v=3.0.3 By: ddc3512 http://weakonomics.com/2009/03/26/value-added-tax-vat-%c2%a0the-pros-and-cons/comment-page-1/#comment-5724 ddc3512 Sat, 06 Aug 2011 01:42:00 +0000 http://weakonomics.com/?p=1402#comment-5724 I don't understand why it's hard to keep up with fraud. It seems with the the proper protocols in place it should be almost self governing. Please explain. I don’t understand why it’s hard to keep up with fraud. It seems with the the proper protocols in place it should be almost self governing. Please explain.

]]> By: PF Blog Spotlight: Weakonomics | The Amateur Financier http://weakonomics.com/2009/03/26/value-added-tax-vat-%c2%a0the-pros-and-cons/comment-page-1/#comment-1866 PF Blog Spotlight: Weakonomics | The Amateur Financier Sun, 05 Apr 2009 22:53:00 +0000 http://weakonomics.com/?p=1402#comment-1866 [...] different methods of taxation, including the income tax, the ‘Fair Tax’, and the Value Added Tax (VAT), which I’ll admit I didn’t really understand before reading this post.  He also [...] [...] different methods of taxation, including the income tax, the ‘Fair Tax’, and the Value Added Tax (VAT), which I’ll admit I didn’t really understand before reading this post.  He also [...]

]]> By: Curious Cat Investing and Economics Carnival #1 at Curious Cat Investing and Economics Blog http://weakonomics.com/2009/03/26/value-added-tax-vat-%c2%a0the-pros-and-cons/comment-page-1/#comment-1863 Curious Cat Investing and Economics Carnival #1 at Curious Cat Investing and Economics Blog Sun, 05 Apr 2009 15:15:29 +0000 http://weakonomics.com/?p=1402#comment-1863 [...] Value Added Tax (VAT): The Pros and Cons by Eric Stinson - “The VAT is also a consumption tax, so there is incentive for you to limit your spending. Like the Fair Tax, if you spend less than you make, you’ll pay less in taxes (all else equal).” [...] [...] Value Added Tax (VAT): The Pros and Cons by Eric Stinson – “The VAT is also a consumption tax, so there is incentive for you to limit your spending. Like the Fair Tax, if you spend less than you make, you’ll pay less in taxes (all else equal).” [...]

]]> By: The Pros and Cons of the Valued Added Tax, Income Tax, and Fair Tax | Weakonomi¢s http://weakonomics.com/2009/03/26/value-added-tax-vat-%c2%a0the-pros-and-cons/comment-page-1/#comment-1770 The Pros and Cons of the Valued Added Tax, Income Tax, and Fair Tax | Weakonomi¢s Fri, 27 Mar 2009 15:02:05 +0000 http://weakonomics.com/?p=1402#comment-1770 [...] find both the VAT and Income Tax include needless complication.  ’Needless’ here is based on my personal [...] [...] find both the VAT and Income Tax include needless complication.  ’Needless’ here is based on my personal [...]

]]> By: DavidNC10 http://weakonomics.com/2009/03/26/value-added-tax-vat-%c2%a0the-pros-and-cons/comment-page-1/#comment-1768 DavidNC10 Fri, 27 Mar 2009 04:38:48 +0000 http://weakonomics.com/?p=1402#comment-1768 I would support a VAT only if it includes a prebate and a requirement that every end user sales receipt show the total tax paid as that product came to market. The prebate mitigates the regressiveness of a consumption tax. Knowing the tax built into every product increases the "feeling" that the tax burden is shared equally by all. You make the case that Best buy has to bare the cost of computing the tax. Under a traditional VAT, each entity in the chain must compute taxes in and taxes out except the retailer. To continue your point, let the retailer be responsible to put the total on the receipt. I would support a VAT only if it includes a prebate and a requirement that every end user sales receipt show the total tax paid as that product came to market.
The prebate mitigates the regressiveness of a consumption tax. Knowing the tax built into every product increases the “feeling” that the tax burden is shared equally by all.
You make the case that Best buy has to bare the cost of computing the tax. Under a traditional VAT, each entity in the chain must compute taxes in and taxes out except the retailer. To continue your point, let the retailer be responsible to put the total on the receipt.

]]> By: the weakonomist http://weakonomics.com/2009/03/26/value-added-tax-vat-%c2%a0the-pros-and-cons/comment-page-1/#comment-1765 the weakonomist Fri, 27 Mar 2009 03:12:55 +0000 http://weakonomics.com/?p=1402#comment-1765 The VAT is the popular tax system in Europe. As I understand it, this replaces the income tax. The VAT is the popular tax system in Europe. As I understand it, this replaces the income tax.

]]> By: mweddle10285 http://weakonomics.com/2009/03/26/value-added-tax-vat-%c2%a0the-pros-and-cons/comment-page-1/#comment-1764 mweddle10285 Fri, 27 Mar 2009 02:26:44 +0000 http://weakonomics.com/?p=1402#comment-1764 Another thing to address about the VAT would be the idea of Americans getting the VAT that they paid returned once they leave the country. Why does this happen? And, when a European comes to America, do they receive money back in a refund to the same degree? Also, you mention that the VAT is similar to the Fair Tax in that it is all that a consumer pays. Is there no income tax in Europe? (That's what I'm assuming)... Thanks! Another thing to address about the VAT would be the idea of Americans getting the VAT that they paid returned once they leave the country. Why does this happen? And, when a European comes to America, do they receive money back in a refund to the same degree?

Also, you mention that the VAT is similar to the Fair Tax in that it is all that a consumer pays. Is there no income tax in Europe? (That’s what I’m assuming)…

Thanks!

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