What is the Vat tax?

Author: Debra Caso

A VAT (value added tax) is a fee (tax) assessed against business by government at various points in the production of goods or services. This is done whenever value is added to it or it is resold. The VAT must be paid by every company that handles a product from raw materials to finished product. So if it takes 4 companies to produce a product the VAT is added to each stage (4 times) in production. Then it is sold to the wholesaler where the VAT is added again. When the wholesaler sells it to the retailer VAT is added again. When the retailer sells the product to the consumer they also add a VAT, and pass along all the VATs that have been added along the way.

This tax is based on the amount of value added at each step along the way, and since the consumer is the final step they are paying for all the VAT. This not only can, but will substantially increase the cost of goods and services.

This tax will be added to everything; food, clothes, electronics, medicines, gas, electricity, water, even trash. It is just another way for big government to keep raising taxes, so they can grow government, and kill the economy, and destroy the capitalist society, and free enterprise system.