Quote:
Originally Posted by JSWolf
VAT is misleading. The consumer gets no added value. So yeah, sales tax and VAT are the same thing. It's just that VAT is a higher rate.
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The difference isn't just semantics.
In practical terms, sales taxes tax consumption whereas VAT taxes productivity.
This is clearly noticeable in things like "sin taxes", sales taxes on cigarettes and alcoholic beverages, and gasoline taxes, both of which are intended to reduce consumption as well as raise revenue.