Block, SkipCaptcha, Automoderated users, edit, rollback
6,613
edits
Changes
Jump to navigation
Jump to search
Line 5:
Line 5: + − + −
exemptions
While some conservatives may mistakenly assume that the VAT tax is "more optimal" because it is a regressive tax, in reality, the VAT tax is similar to a corporate net income tax, except broader in the sense that certain items like labor, rent, and capital, for which a VAT tax has not previously been paid on, are not deductible.<ref>[http://www.taxpolicycenter.org/taxtopics/encyclopedia/VAT.cfm Tax Policy Center - VAT]</ref> [[FairTax]], which supports a national sales tax, is opposed to a national VAT tax.<ref>[http://www.fairtax.org/site/PageServer FairTax]</ref>
While some conservatives may mistakenly assume that the VAT tax is "more optimal" because it is a regressive tax, in reality, the VAT tax is similar to a corporate net income tax, except broader in the sense that certain items like labor, rent, and capital, for which a VAT tax has not previously been paid on, are not deductible.<ref>[http://www.taxpolicycenter.org/taxtopics/encyclopedia/VAT.cfm Tax Policy Center - VAT]</ref> [[FairTax]], which supports a national sales tax, is opposed to a national VAT tax.<ref>[http://www.fairtax.org/site/PageServer FairTax]</ref>
In the UK, certain goods deemed necessities, such as [[food]] and children's [[clothing]], are exempt from VAT. However, this exemption has tended to lag behind societal change, so that many products that most people would now consider necessities, such as [[telephone]]s and certain hygiene products, are not VAT-exempt.
==See Also==
==See Also==
*[[Taxation]]
[[Taxation]]
==References==
==References==