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(CNSNews.com) – The 2012 Republican Party platform states that the party would accept a value-added tax (VAT) or other consumption-based tax only if the 16th Amendment authorizing the federal income tax were repealed.
“In any restructuring of federal taxation, to guard against hypertaxation of the American people, any value added tax or national sales tax must be tied to the simultaneous repeal of the Sixteenth Amendment, which established the federal income tax,” the platform says.
The section mentioning the VAT or national sales tax is a holdover from the 2008 platform, which included nearly identical language premising a national consumption tax to the repeal of the 16th Amendment.......
2012 GOP Platform Ties VAT Tax to Income Tax Repeal
A value added tax (VAT) is a form of consumption tax. From the perspective of the buyer, it is a tax on the purchase price. From that of the seller, it is a tax only on the value added to a product, material, or service, from an accounting point of view, by this stage of its manufacture or distribution. The manufacturer remits to the government the difference between these two amounts, and retains the rest for themselves to offset the taxes they had previously paid on the inputs.
The value added to a product by a business is the sale price charged to its customer, minus the cost of materials and other taxable inputs. A VAT is like a sales tax in that ultimately only the end consumer is taxed. It differs from the sales tax in that, with the latter, the tax is collected and remitted to the government only once, at the point of purchase by the end consumer. With the VAT, collections, remittances to the government, and credits for taxes already paid occur each time a business in the supply chain purchases products.
Value Added Tax
Investopedia explains 'Poverty Trap'
In order to escape the poverty trap, it is argued that individuals in poverty must be given sufficient aid so that they can acquire the critical mass of capital necessary to raise themselves out of poverty. This theory of poverty helps to explain why certain aid programs which do not provide a high enough level of support may be ineffective at raising individuals from poverty. If those in poverty do not acquire the critical mass of capital, then they will simply remain dependent on aid indefinitely and regress if aid is ended.
Originally posted by Neocrusader
reply to post by ctdannyd
The rich will just buy stuff from over seas where no VAT is applied - as they can afford to do it
Originally posted by sheepslayer247
The Republicans have said for some time that the VAT tax is a bad idea and only a "socialists" like Obama would consider it!
Many of our fellow members on ATS lambasted the Dems when they talked about it......now the GOP is considering it?
Hypocrites!edit on 30-8-2012 by sheepslayer247 because: (no reason given)