>>>Looking at Obama's tax plan, he says he's going to give a tax break to 95% of the people. Well, it just so happens that 45% don't pay ANY taxes. That means Obama will take the money away from us and give to those who don't want to work. Then he has a program to foist 800 billion and more in new programs onto the public. Guess where he wants to get the money for this socialism? Yep, the good old American working man and woman. Robin Hussein Obama - stealing from the middle class so his constituents don't have to get a job!
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>>Beware. The Value Added Tax scheme may be on the way. This little beauty taxes a product or service at every step of it's creation, from it's beginning to it's final sale to you. Mine the ore. Tax it. Smelt the ore. Tax it. Sell the iron. Tax it. Make the product. Tax it. Sell it to you. Tax it. All the taxes are passed ahead until the buyer pays all the taxes. The governement has found a way to tax taxes.
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>>Never forget the Liberal motto - "The people are too stupid to know what to do with their money, so we'll take it an spend it where it should be spent."
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>This is not the way VAT works here. It's only the last one in the chain that pays VAT. (This is you) All inbetween pay, but get there money back (this one is a job creation scheme)
>This is the justest tax, because if you are the last in the chain, you are. Everyone needs to pay it, there is no "I'm to poor" or "I have expenses". There is little tricking 'bout it, inthe way that some small companies try to declare owners food as company expense, but the tax office caught it regular.
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>You pay tax on tax (we have those "energy tax") but it's not the way we pay VAT on VAT.
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>Agnes


It is true that as long you are in the chain you get the money back. It's just that you get it back (most of the times) later - so the government can 'use' it in the mean time
It also makes it simpler. You do not have to ask 'are you the last one in the chain' to know whether you have to add vat or not.
They may not know at the time... Example In Belgium if you buy a car (and all expenses related to that car) the maximum VAT you can get back is 50%.
Someone that is buying and selling cars gets 100% back. It may happen that at some point in time they decide to use a car they have bought. Then they have to pay the 50%

There are exceptions to the 'law of the chain' - depending on the country - Lawyers, insurances etc do not add VAT when they sell something. If you do not add VAT, you cannot get the VAT back that you have paid



An example of tax on tax is that the VAT is also calculated on import duties (+costs like transportation) and excise (tobacco, fuel, alcohol, ...)