Value added tax (VAT): Is a value added tax (VAT) a good idea?

  • Added to Imports

    A value added tax on imports is essentially a tariff, much like the original days of when colonial America first needed tax revenue. A tax such as this in today's world is a good idea. The tax will encourage companies to produce goods in America to get around the tax. Everyone would pay the tax, essentially a national sales tax, when they buy products. It would replace the income tax so people who make more and spend more money will pay more taxes.

  • Yes, a VAT tax effectively taxes servies that otherwise wouldn't be reached.

    Yes, a VAT tax is a good idea, because it effectively reaches services to tax that otherwise would not be taxed. People value the services that add value to the product, so it is fair to tax these services, just like you would tax any other goods, or impose a sales tax. A VAT tax allows the government to collect revenue that it would otherwise not be able to collect, and is thus a good tax.

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