What if the US introduces VAT?

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With ANY tax system, there will gradually be changes to it that allow the government and controlling interests to take advantage of it or to facilitate various policy objectives, such as social engineering/justice, business growth in certain areas, etc. etc. etc.

Given our history, a VAT would end up just as complicated, if not more complicated then the current income tax, with new deductions, allowances for this or that, credits for planting a tree in your yard!
 
Originally Posted By: expat
In Canada low income people also get a GST credit 4 times a year, to off-set the tax they paid.


Here, since we're on a fast track to creating more lower income people, something like that would be deemed "unfair".
 
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Then there is an entire industry built on preparing and processing income taxes.

It's about 1.5% of our GDP. Do you think the accountant lobby would support removing the income tax?

It's their cash cow.
 
Originally Posted By: Tempest
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Then there is an entire industry built on preparing and processing income taxes.

It's about 1.5% of our GDP. Do you think the accountant lobby would support removing the income tax?

It's their cash cow.



Are you saying that the accounting lobby has authority in these matters??? Aren't they as impotent and innocuous as the AMA?
 
Authority? NO.

Lots of money to influence the complexity of the income tax? Yes. They have their right to lobby, but you never see the light shown on this in the media.
 
No web link (the internet being the beacon of truth) completely supporting and trying to prove your agenda?
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Tempest, the complexity of taxation comes from lobbyists from ALL industries and hardly from accountants themselves. It's your good buddies in big business and industry who lobby Congress to get their special tax provisions that make the tax code complex.

http://libn.com/blog/2009/06/17/accounting-group-seeks-to-simplify-the-us-tax-code/

You know what, if they change the tax code to make it more "simple", it'll mean even MORE business for tax accountants because most tax payers on their own, won't learn the changes on their own. That's why they hire accountants, especially small businesses, and of course large corporations.

It's what we do.
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If it takes a tax accountant, it's not simple enough. Things are only complicated to confuse so that the ones doing the complicating can benefit.
 
The funny part of it is that you need two books - one for taxes and another one for your operations. That's why you need a tax accountant since GAAP is different than the tax laws.
 
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You know what, if they change the tax code to make it more "simple", it'll mean even MORE business for tax accountants because most tax payers on their own, won't learn the changes on their own. That's why they hire accountants, especially small businesses, and of course large corporations.

It's what we do.

Thanks for verifying my view.
 
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