Taxation in the United States, Taxation in US, US VAT, VAT in United States, Value Added Tax Rules, VAT In European Countries
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Tax system in US is considered to be a complex system which may involve payments to at least four different levels of government:
Local government, possibly including one or more of municipal, township, district and county governments Regional entities such as school, utility and transit districts
State Government
Federal Government
US tax consists of a coordinated pair of taxes, one levied on business and other on individual’s business tax component of US tax is a subtraction method value added tax of consumption type.
Value-added tax need of the hour: – US
Recently President Bush’s tax commission has rejected the idea of a national sales tax and has expressed misgivings over European-style consumption taxes, drawing complaints of timidity from critics who want the panel to eliminate the income tax.
“Apparently they have dismissed out of hand the prospect of fundamental reform,” said Leo Linbeck, the chairman and chief executive of Americans for Fair Taxation, a group advocating a federal retail sales tax.
“That’s disappointing to me, as you might expect.”
The President’s Advisory Panel on Federal Tax Reform wrapping up its work on recommendations for making the federal tax system fairer, simpler and better for economic growth.
Replacing income taxes with a national retail sales tax expressing concerns about high tax rates and rampant tax evasion problem can be solved.
Planners are checking for the possibility of recommending a value-added tax – a tax used widely in Europe that imposes a tax on increased value of a product at each stage of production and passed on to consumers.
The changes they have recommended, which leave the income-tax system in place, have made some reform advocates believe that the panel will not embrace fundamental change.
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