Question:

Why there's no Value Added Tax in the USA unlike here in the Philippines?

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please recommend me a website that can prove this....

thanks a lot!!!

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4 ANSWERS


  1. Americans don't want one.  Politicians know it would be wildly unpopular and they want to keep their jobs.


  2. "Americans don't want one" is half the answer.  That's why there's no national VAT here.  Each state (there may be exceptions) has a sales tax, but only for items which are both bought and sold within the same state, so you'd never get charged sales tax from there.

  3. There just isn't.  In the US, sales taxes are pretty common; all but a few states levy them.  They're similar to VAT but are levied only upon the final retail consumer instead of at all phases of the production and distribution chain.  That makes it much simpler to administer and greatly simplifies the accounting and reporting requirements.  Additionally, VAT is generally levied at the national level while sales taxes in the US are levied at the state level.  There really isn't a website that will "prove" this; it's just the way that it is.

  4. Americans have been less likely to support additional taxes as people from other countries around the world based on taxation as a percentage of GDP.  In addition, America is unique in that the fifty state governments and thousands of local governments collect their own taxes.  The VAT in America comes in the form of local and state sales taxes even though the revenue is collected as part of the final sale instead of at each step in the production process.  It would be too hard to get a national sales tax or VAT to exist alongside income taxes in the United States because people tend to view the national government with suspicion and there has been a recent desire for more state and local control.

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