2-21-19 - Tax Alternatives Currency and the Fed ● Value...

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Tax Alternatives, Currency, and the Fed Value added Tax This is a tax placed on the value that manufacturers add at each stage of production… (it is a “consumption” tax) The concept of Value Added If you were producing a car there would be countless steps in its creation and every item would have a tax on it that the business pays: Since the tax is also put on the inputs each company is paying those taxes in the production of the item… Disadvantages of the VAT Consumers would not actually notice these taxes most of the time. The burden of these taxes could increase because if wage changes or shortages of items rather than the tax… Another issue is the state sales tax: If states gave these taxes they will be added in tip of the VAT which further increases the price for every item. This is an example of a regressive tax… The Flat Tax This is a proportional tax on individual income after a specified threshold has been reached…
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  • Fall '19
  • Tax Alternatives

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