Value Added Tax

Now there's more talk about an value added tax! Oh no.

Will it be added at the cash register? Can it be avoided by buying on line? Do companies pay this tax?

The answer is no. It is added to an item as it is made.

An example would be a hot dog. Value added to a wienie? Yes.

When the meat is slaughtered and cut, tax added. When the spices are packaged to send to the food processor, tax added. When the dog is mixed, stuffed, cooked, and packaged - tax added.

It adds on and on and on and we get to pay the increase hidden in the cost of that package of hot dogs.

It's like the statement that corporations don't pay taxes. You smile and think of course they do. It's a known fact that the US has some of the highest corporate taxes in the world.

Well, the corporate may remit the $ but you can bet they recoup it through sales. It becomes a cost of doing business covered by income. You and I pay those high corporate taxes.

Value added tax is another way to get $ from all of us. Including those who make less, much less, than the $200,000 income limit that our Noble Peace Prize winning president swore he would not tax.

'til later