Please let me know what the issue is with VAT

 Here in Europe we have had VAT for decades.  It is a form of taxation like any other.  The basis of the tax is that VAT registered traders charge VAT on their sales, and claim VAT back on the things they buy.  As the product or service passes through the supply chain each trader pays over the difference between what they have collected from their customers and what they have paid to their vendors over to the government. Eventually someone  buys the goods (usually the consumer) and the they cannot claim the tax back.  A little bit like pass the parcel.

The rate of VAT can be adjusted to focus spending on priorities, so here food, childrens clothes, health and transport, exports carry no VAT.

The advantage is for the government is that the tax is paid by businesses so easier to enforce and collect.   It also means that changes to the rate are simple.  The spenders in the economy, usually the wealthy, pay more tax.

How the government use the money raised is like any other form of taxation.   It is a form of taxation, it is not part of political ideology.  So please believe me you won’t all become communists.  

What I find confusing is that when there is a major disaster, 9/11, Hurricane Katrina, Haiti,  the American people come together and help as much as they can.  But if the disaster is private and personal, say cancer, heart attack, then people who have no healthcare are set aside as if it was their fault.  Usually it is no more the victims fault than if they were unlucky enough to be on the top floor of the twin towers.

So why is VAT the son of the devil?

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By Steve Knowles - More than 25 years in business and practice in the UK means that there is very little that I haven't seen before.  But I also worked on your side of the pond and I have spent too many hours on planes and in airports.  But the years haven't dulled my way of seeing an alternative view to everyone else, and everyday is a new adventure.

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