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VAT - what does the gvt use it for?

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  • 16-10-2006 7:47pm
    #1
    esperanza
    Closed Accounts Posts: 689 ✭✭✭


    Anyone ever wonder what the govt does with the whopping 21% of tax it takes on most goods and services? I've even stopped buying certain goods in countries with such high vat rates out of principle. I don't see why such a large share has to go to

    VAT was invented by a French economist in 1954. Maurice Lauré! Trust the French to come up with this!

    In the US VAT doesn't exist, but some kind of sales tax does, but nothing near as high as 21%!

    Do you think VAT is a fair tax? (I do think some taxes, especially green taxes, are good! There need to be more of these to stop people buying cars and polluting the environment).


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    #2
    jrey1981
    Closed Accounts Posts: 1,531 ✭✭✭jrey1981


    I'm not a big fan of VAT. As a comparison states in the US set their own taxes. Eg I think in New York it's something like 7 % or 11 %.

    It is also a regressive tax in that it takes a disproportionate share of income from the less well-off.


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    #3
    whatawaster
    Registered Users Posts: 12,906 ✭✭✭✭whatawaster


    but if the government don't tax goods and services they'll only slap it on something else.
    It's also not charged on food, childrens clothes, medicine and other basic necessities, so, while it is regressive, i don't think it's necessarily that inequitable.


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    #4
    hmmm
    Registered Users Posts: 11,205 ✭✭✭✭hmmm


    The problem with green taxes or taxes on things like smoking is what happens if everyone changes their way and behaves - no income.

    VAT is actually relatively progressive, those people who buy bigger cars pay more tax.


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    #5
    antoinolachtnai
    Registered Users Posts: 9,787 ✭✭✭antoinolachtnai


    You think it would be better to tax income and capital gains?


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    #6
    dahamsta
    Banned (with Prison Access) Posts: 16,659 ✭✭✭✭dahamsta


    FYI, the US is contemplating a value-added tax right now and has been since 2005 (and probably before). I'm pretty sure a bill is wandering around the stately halls of the Senate and the House.

    adam


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    #7
    mckers
    Closed Accounts Posts: 21 ✭mckers


    I presume you all know that VAT is now the biggest grossing tax in Ireland, the majority of which is accounted for from property. Brings in 10-11 billion per annum.

    Is it progressive??? With the exception of cars, no, not really.

    Still there are worse taxes, like VRT (which will always exist in some form, and will most likely be renamed as a carbon tax in 2010 (or whenever it it to be phased out)) and stamp duty.......


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