Would a national retail sales tax simplify the tax code? Q.Would a national retail sales tax simplify the tax code? A.It would for individuals, but not as much for businesses and enforcement authorities. Read more about Would a national retail sales tax simplify the tax code?
How would a VAT be collected? Q.How would a VAT be collected? A.Most countries with a value-added tax employ the credit-invoice method. Under this method, businesses are taxed on their sales at each stage of production but obtain credits for the taxes they paid on inputs. Read more about How would a VAT be collected?
Who would bear the burden of a VAT? Q.Who would bear the burden of a VAT? A.A value-added tax (VAT) is a tax on consumption. Poorer households spend a larger proportion of their income. A VAT is therefore regressive if it is measured relative to current income and if it is introduced without other policy adjustments. A VAT is less regressive if measured relative to lifetime income. Read more about Who would bear the burden of a VAT?
