Comments by "" (@TheHuxleyAgnostic) on "ANALYSIS: Value Added Tax" video.

It ends up being the same as a sales tax. A 10% sales tax on a total value of $500 is $50. A 10% VAT on 5 stages of $100 value added is $50. And it's the final consumer who ends up paying in both cases.
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If you're referring to businesses paying, there's nothing for them to dodge, since it's built right in that they can reclaim their input VAT, in order to avoid double taxation. A VAT is only harder for them to dodge charging, collecting, and turning in the proper amount.
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@taskforceandy2830 Rofl, Amazon has their own tutorials on how a VAT doesn't end up taxing businesses. "How VAT works in Europe" "How to claim back VAT" https://services.amazon.co.uk/services/vat-resources.html
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David, you missed explaining that a VAT isn't designed to tax businesses. In fact, it's specifically designed to NOT tax businesses in order to avoid double taxation. Businesses get to reclaim their input VAT. A VAT won't have corporations paying you for your data. A VAT won't have corporations paying you to show you ads. A VAT won't have corporations paying you for every automated truck mile. A VAT would have you, the consumers, paying a tax on your own data, a tax to be shown ads, and a tax on automation taking your jobs. https://ec.europa.eu/taxation_customs/business/vat/what-is-vat_en http://publications.gc.ca/Collection-R/LoPBdP/BP/prb0003-e.htm#A.%20Taxing%20Mechanism(txt)
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@myt1soo320 Boy, you sure spouted a bunch of bullshit. No, corporations don't pay taxes through a VAT. Canada had healthcare before we had a VAT, and a VAT is only about 10% of our federal revenue. Our federal and provincial governments also share healthcare costs, so it's not funding much of our healthcare. Also, a private option is different from a public option, dumb dumb. We definitely don't have a public option.
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@myt1soo320 You idiots keep tossing around the word "luxury". A VAT is zero rated by the type of product not the cost of a product. If you buy a shitbox used car from a dealer you pay a VAT, just like someone buying a new Porsche. If your shitbox car breaks down you pay the mechanic a VAT, just like when the Porsche breaks down. If you buy a Big Mac you pay a VAT, just like someone eating at a fancy restaurant. If you buy a plastic watch you pay a VAT, just like someone buying a Rolex. If you buy a shit flip phone you pay a VAT, just like someone buying a top of the line iPhone. If you have a dinky little house you pay a VAT on utilities, just like someone living in a mansion. If you have plumbing issues you pay a VAT, just like someone living in a mansion. If you buy crappy fake Lego for your kid you pay a VAT, just like someone buying a giant real Lego set. If you go to cheap movie night you pay a VAT, just like someone going to a theatre production. Etc. Poor people would have to sit in the dark, without heat, without communication, counting stars for fun, to totally avoid a VAT.
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As a percentage of income it would still be regressive. Yang doesn't even know how a VAT works. A VAT is specifically designed to NOT tax businesses in order to avoid double taxation. Anyone promoting a tax designed to not tax businesses as a way to tax businesses is talking gibberish, really.
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You're talking nonsense. A VAT is specifically designed to NOT tax businesses in order to avoid double taxation. There's nothing for them to avoid paying.
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@taskforceandy2830 You're clueless. It's built in that businesses can reclaim their input VAT, in order to avoid cascading taxes upon taxes, which would be worse. A VAT is a sales tax collected in stages with all the business stages getting paid back. Table 1: if the final consumer pays $49 and the government collects $49, then how much did each of the businesses end up paying? http://publications.gc.ca/Collection-R/LoPBdP/BP/prb0003-e.htm#A.%20Taxing%20Mechanism(txt)
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@taskforceandy2830 It is cool that the 160 countries already using a VAT honestly state it's not meant to tax businesses. "a consumption tax because it is borne ultimately by the final consumer. It is not a charge on businesses." "taxable persons (i.e., VAT-registered businesses) deduct from the VAT they have collected the amount of tax they have paid to other taxable persons on purchases for their business activities" "the taxable person is entitled to deduct all the tax already paid at the preceding stage. Therefore, double taxation is avoided" https://ec.europa.eu/taxation_customs/business/vat/what-is-vat_en Not so cool that Yang and his gang have been spreading nonsense for over a year.
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@taskforceandy2830 What is also cool is that the IMF put out a VAT pass through rate study, that Yang actually links to. With regard to the "central question", it found a 100% pass through on standard rated goods and services. What's not cool is that Yang completely misunderstood that expanding to include zero rated goods and services is only relevant to overall CPI, cost of living, or inflation. Zero rated goods are irrelevant to who pays the tax, because nobody is paying the 0% on zero rated items. You can't take a 100% pass through standard rated item, a 0% pass through zero rated item, get a 50% average pass through, and reverse engineer that to claim businesses paid 50%. Consumers paid 100% on 50% of the items is what it means.
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@taskforceandy2830 There are also cool images, with single digit math, for slow people. If the final consumer pays $2 and the government collects $2, then how much did the businesses pay? (Hint: they even give you the answer, on the right) https://images.app.goo.gl/75sQzYrBpAaNp46K9
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@taskforceandy2830 There are even under a min videos, for those with ADD. "But there is also good news, most businesses can recover the VAT they paid. But, not all businesses, however, realise is that quite a few countries also allow VAT recovery to foreign businesses. Money that was thought to be a cost is actually refundable." https://youtu.be/WsRuTPXdH_Y
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@taskforceandy2830 This only takes seconds. If you want a long thread proving you were spouting pure shit, just say so. No skin off my back. Singapore made the business VAT formula into a pretty picture, without pesky numbers, for simpletons ... https://images.app.goo.gl/YNbXK4k4cJWk9y3M9
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@taskforceandy2830 Seriously, not a problem. Only takes seconds to prove you're clueless. "Input credit means at the time of paying tax on output, you can reduce the tax you have already paid on inputs. Say, you are a manufacturer – tax payable on output (FINAL PRODUCT) is Rs 450 tax paid on input (PURCHASES) is Rs 300 You can claim INPUT CREDIT of Rs 300 and you only need to deposit Rs 150 in taxes. See here: Understanding Input tax credit under GST Input Credit in GST Input Credit Mechanism is available to you when you are covered under the GST Act. Which means if you are a manufacturer, supplier, agent, e-commerce operator, aggregator or any of the persons mentioned here, registered under GST, You are eligible to claim INPUT CREDIT for tax paid by you on your PURCHASES." https://cleartax.in/s/what-is-input-credit-and-how-to-claim-it
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@taskforceandy2830 No problem. "If a business is VAT registered they can reclaim the VAT they have paid on purchases. The difference between what they have charged on sales and what they have paid on purchases must be sent to HM Revenue & Customs. If this is a negative figure then it means they have more to reclaim than they have charged and HM Revenue & Customs will send the business the amount due." https://youtu.be/fmAbBu7VQjQ
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@taskforceandy2830 Glad to help. "You can claim a credit for any GST included in the price of any goods and services you buy for your business. This is called a GST credit (or an input tax credit – a credit for the tax included in the price of your business inputs)." https://www.ato.gov.au/Business/GST/Claiming-GST-credits/
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@taskforceandy2830 I do say. "If you’re GST registered, you can claim back the GST you pay on goods or services you buy for your business." https://www.business.govt.nz/tax-and-accounting/basic-tax-types/gst/
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@johnkslee82 Greg Mankiw is an idiot who promoted a flat 20% income tax/UBI combo, which is an even dumber idea than Yang's. It's based on ancient thinking, and doesn't work with today's billionaires getting paid in stocks instead of money. Zuckerberg takes something like a $1 paycheck. He'd pay 20¢ into Mankiw's plan and get back $12k, while someone making $12k would pay in $2400 and get back $12k. That's some dumbass shit. Today's Mr Frugal is sitting on a hundred billion dollars, while Mr Spendthrift is pouring his money back into the economy. Mr Frugal is exactly who you want to tax, as well as the top 3000 US corporations who are just sitting on $2.7t.
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@SarthakKamat A VAT doesn't actually tax businesses. It's specifically designed to NOT tax businesses in order to avoid double taxation. If a corporation like Amazon isn't paying into the dividend then they only get the benefit of the dividend being spent. Amazon would make an extra $60b a year from $3t in increased consumer spending. That would make Bezos extra billions a year more than he'd ever personally pay into a VAT. Having money end up flowing to those at the very top even faster than it is now isn't progressive. Plus, there are millions of people on government assistance that he doesn't have stacking with UBI who would get less benefit than some well off people. That's also not progressive.
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@curtishancock432 You should really look into whether something was fully repealed, partially repealed, or whether assets are simply being taxed under some other method. Denmark, for example, has a higher property tax rate for property of higher value. That is, effectively, taxing real estate wealth at a higher rate, as a wealth tax would.
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Works pretty well, at doing what, other than generate revenue? Sales taxes work pretty well at generating revenue, which has nothing to do with regressiveness. A VAT sure doesn't work pretty well at taxing businesses, because it's not designed to tax businesses.
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@halocemagnum8351 A VAT doesn't target companies. A VAT is specifically designed to NOT tax businesses in order to avoid double taxation. They get their input VAT credited back to them.
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@UltraCasualPenguin What are you on about? I'm the one who said the previous stage gets paid back, and never mentioned a 50% vat.
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@UltraCasualPenguin $50 on $500 is 10%, not 50%, exactly like it says.
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@UltraCasualPenguin Oh geez, a typo. Yep, better go back to school. Pretty clearly intended to compare same amounts of the two taxes.
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You've pointed out the fact that life is generally regressive for poor people, not that the VAT isn't regressive. A VAT return is a fairly simple one page form. Filled them out for years.
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