A VAT or value added tax is and estimated increase in value to a product when a substance or item is transformed into a new product. Companies that make a new product and sell it, pay the value added tax to the government. If a substance or product is used four times to produce a new product, the value of that new product carries an added taxed. In the meantime, other taxes are still paid to the government.
The only purpose of this value added tax is to generate funds for the government. It also makes the product more expensive.
Remember that Obama, when campaigning, said that he would raise taxes ONLY on the upper income groups. Well, the VAT raises prices on everyone just like state and federal sales taxes do on higher and higher priced gasoline. ... the right jack
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