>>>>>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!
>>>>
>>>>
>>>>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.
>>>>
>>>>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."
>>>
>>>
>>>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.
>>>
>>>You pay tax on tax (we have those "energy tax") but it's not the way we pay VAT on VAT.
>>>
>>>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%
>
>It is used - it is payed
>
>>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
>
>You are the last in chain then?
>>
>>
>>An example of tax on tax is that the VAT is also calculated on import duties (+costs like transportation) and excise (tobacco, fuel, alcohol, ...)
>
>Yeah, I know. But VAT on VAT is uncommon. If somebody is numb enough to not recollect it, er, thanks for paying states expenses. There is a need to pay states expenses (the poor bankers you know). And I consider VAT better then all those income tax where everybody is playing around. Not that I like to spend. There is a need to do it. So VAT gives the chance to get it from everybody, not just from the poor.
>
>Agnes

I'm not the last in the chain since I add VAT to my invoices. Although for some things I am the last in the chain - depends what I use it for. If it is to generate income (eg computer, software) I'm not the last in the chain. If not to generate income, I am. And in certain circumstances I'm partially the last one in the chain since I use only part of it to generate income


Oh but there are people playing around with VAT as well

There's a difference between income tax and VAT
Income tax is on the income. Every one likes to play around a bit. I try too - not that I can do a lot.
Income tax (for persons) was for the income of 2007 as follows in Belgium
25% - from 0 to EUR 7420
30% - from 7420 to 10570
40% - from 10570 to 17610
45% - from 17610 to 32270
50% - anything above 32270

So if an income is eg 11000
then
1855 = 7420 * 25%
945 = (10570 - 7420) * 30%
172 = (11000 - 10570) * 40 %
-------
2972 (minus a couple of things)

So the higher the income the higher you are taxed

VAT on the other hand is the same percentage on the sales price. It does not take your income into account - rich or poor they all pay the same - if they buy of course