13 ms·

This is what a sales tax, like VAT, is.

• mrweasel 10y ago
  VAT isn't a sales tax. But yes, it's moving the entire taxation of companies to the sales tax level. The US already have sales taxes, at least in some places. The US generally, as is my understanding, doesn't have a VAT. VAT is a consumption tax, sales taxes are taxing the sellers purchase. The differers is very subtle.
  • hga 10y ago
    The US has sales taxes in most places, and there's a bewildering number of them, e.g. in my home town that I've retired to, I could be paying the state sales tax, I'm sure some states allow counties to do it, the city sales tax (and my city spans two counties), and a special tax for the shopping area, each of decreasing size. There's also exemptions or lower rates for things like food, and even sales tax "holidays" when certain classes of items are free of sales tax for a few days. All of this complexity is one reason Internet companies don't want to collect it. If we have a VAT, no one's told me about it (a general one, anyway)! The concept does get mooted every once in a while.