It worked just fine that way prior to 1913. Back then we had some tariffs and excise taxes, but no federal income tax. It’s not a stupid idea to think that the burden of taxation should be shared equally nor is it dumb to explore alternatives to income tax for federal funding. The size & scope of our federal government needs to be dramatically reduced.
Last edited by Suppressed Poet; 06-01-2023 at 05:35 PM.
It's never been explained why it wouldn't work, it's only been argued that poor people would have to pay taxes, which would be easily alleviated through an exemption status.
You want to control peoples wealth through the strong arm of the government because you hate people that are more successful than you.
The object of life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane. ~ Marcus Aurelius“It's a beautiful thing, the destruction of words.”
― George Orwell, 1984
“The urge to shout filthy words at the top of his voice was as strong as ever.”
― George Orwell, 1984
It didn't work just fine, look at the massive problems that existed pre and post Civil War, our country simply had very little means to defend itself. Excise taxes on alcohol, gunpowder and tobacco were fine until war broke out. All countries tax, you all keep pretending it's America's original sin.
It’s been explained a few times why it won’t work. If it did work, and it was so amazing, we would have it. Obviously it’s been dissected countless times. The US government doesn’t care about poor people.
Here are some reasons:
Roadblocks and Challenges to Implementing a VAT System in the US
Despite the widespread use of VAT systems across the world, the United States remains a notable exception. Implementing such an indirect tax in the US would face numerous roadblocks and challenges.
One of the primary reasons why the US has not adopted a VAT system is the federal system of government. Due to that, the US has a more decentralized tax system than many other countries, with the US Constitution granting significant powers to individual states. US states have their own tax laws, and they collect sales and use taxes (sometimes not just states, but local governments, too), which are an essential source of revenue for states and localities. In light of these differences in the tax foundations on a state level, many of them would likely resist attempts to harmonize their state tax systems with a national VAT, not to mention the substantial political challenges it may bring.
Introducing a VAT system in the US would be a significant undertaking. The country's complex sales tax system currently has different scopes, tax rates, definitions, and exemptions in each state. Harmonizing these systems would require extensive coordination between the federal government, states, counties, and cities. However, there are initiatives to reach some degree of uniformization, like the Streamlined Sales Tax Project.
Moreover, the US has a large and intricate economy. Implementing a VAT system would require significant changes to the tax infrastructure, which would involve high costs and could take long years to implement. The US would also need to establish a system for administering and collecting VAT, requiring a significant investment in technology and personnel.
Another challenge would be the impact on businesses. While the VAT system is designed to be neutral to businesses, transitioning to a new tax system would bring some challenges. Since VAT is applied at every stage of the supply chain, VAT would place a more significant burden on some businesses than sales tax, as it requires them to collect and remit VAT correctly, keep detailed records, and comply with all the potential VAT obligations (VAT registrations, VAT reporting, new types of tax returns, etc.). Small businesses, in particular, may need help to adjust to the new system, which could lead to increased administrative costs and reduced profitability.
Introducing VAT would likely mean higher tax rates for the final consumers than the current sales tax system, as VAT is generally applied at a higher rate than sales tax. Furthermore, VAT is levied at each production stage, which may increase costs for businesses and, in turn, lead to higher consumer prices.
Lastly, enforcement is another challenge to implementing a VAT system in the US. While VAT is designed to be self-policing, with businesses responsible for collecting and remitting VAT payments, enforcement can be difficult. Tax audits and investigations are necessary to ensure compliance and deter fraud and tax evasion, but this requires additional resources and personnel.
You and others are already crying that the government wants to give money to the IRS to help out, that and even more money would be required to implement a VAT system.
FYI: I’m all for VAT, but I don’t think it’ll work ever in the states. America is far different, bigger and more complex than every other economy that uses it.
Last edited by Solkern; 06-03-2023 at 01:46 AM.
Implementing a Value Added Tax (VAT) system in the United States could offer several potential advantages over the current system, although it's important to note that there are differing opinions on the matter. Here are some reasons why a VAT system might be considered beneficial:
Simplicity and Efficiency: The current US tax system is complex, with various deductions, exemptions, and loopholes. A VAT system can be designed to be simpler and more streamlined, reducing administrative burdens for both taxpayers and the government. VAT is a consumption-based tax, generally applied at each stage of production and distribution, making it easier to administer and enforce.
Broader Tax Base: A VAT system has the potential to capture a broader tax base by taxing consumption rather than income. Currently, a significant portion of the US population does not pay federal income taxes due to various deductions and credits. A VAT would ensure that everyone contributes to the tax system based on their consumption, thus potentially reducing the tax burden on income.
Stability and Predictability: VAT provides a stable and predictable revenue source for the government. In contrast, the US relies heavily on income taxes, which can be subject to fluctuations due to economic cycles. A VAT system, when properly designed, can offer a more reliable source of revenue, helping to stabilize government budgets and reduce deficit spending.
Encouraging Savings and Investment: By taxing consumption instead of income, a VAT system can incentivize savings and investment. Individuals and businesses may be motivated to save and invest more, leading to increased capital formation and economic growth.
International Competitiveness: The US is one of the few developed countries without a VAT system. Many countries around the world, including major trading partners, use VAT as a significant revenue source. Implementing a VAT could potentially make American exports more competitive in global markets by reducing the tax burden on exports while collecting taxes on imports.
Potential for Lower Tax Rates: A VAT system could allow for lower tax rates compared to the current income tax system, while still generating sufficient revenue. This can provide individuals and businesses with more disposable income, potentially stimulating consumption and economic activity. Solkern isn't the only one who can use ChatGPT. Difference is: I'm not claiming it's my own work... probably because I'm not a lazy piece of shit.
Last edited by Parkbandit; 06-03-2023 at 08:31 AM.
Never said it was my own work, nor did I use chatAI, keep making false accusations, look like an idiot some more. completely agree VAT would be amazing, but we weren’t talking about the benefits and drawbacks, I was talking about why it won’t be implemented in the states, but once again, you fail to grasp the conversation at hand, from the quote I posted and my reply.
you continuously show an inadequate mental capacity to follow any type of conversation.
Nev: no one has shown why it won’t work in america
Me: here are some reason why it won’t work or be implemented
PB: HERE ARE THE BEENFITS OF VAT!
Lol?
https://www.fonoa.com/blog/the-ameri...-no-vat-system
My source.
Last edited by Solkern; 06-03-2023 at 09:29 AM.