value-added tax

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value-added tax

(VAT), levy imposed on business at all levels of the manufacture and production of a good or service and based on the increase in price, or value, provided by each level. Because the consumer ultimately pays a higher price for the taxed commodity, a VAT is essentially a hidden sales tax. Originally introduced in France (1954), it is now a major part of the tax structure of most Western European nations. In the early 1990s the U.S. government considered instituting a VAT to fund national health care programs.
References in periodicals archive ?
Most nations have replaced a portion of their tariffs and income taxes with consumption taxes.
In real terms, the burden of the consumption taxes would fall on the consumers (although some of the burden would be shared by producers and sellers) and would result in a loss of real purchasing power of consumption goods and services for existing wealth.
All of these proposals are consumption taxes and thus have tremendous potential to improve our economy by increasing savings," said Martin A.
Eliminate all regressive consumption taxes before imposing a flat income tax.
There are, however, problems with consumption taxes that will have to be worked out.
from pure income and consumption taxes (such as deductions granted to
less earnings from savings), which would affect lifetime income taxes, but not lifetime consumption taxes.
The National Tax Agency plans to launch an online tax collection system for individual, corporate and consumption taxes as early as January 2004, a Japanese business daily reported Monday.
Compared to the consumption taxes prevalent throughout the world, a fiat tax treats imports and exports quite differently.
Consumption taxes generally are considered regressive because lower-income taxpayers use a higher percentage of income for consumption.
That is precisely why our founders used consumption taxes as the primary means of funding government.
There are ways of structuring consumption taxes that make them politically acceptable.