Democratic Primaries
Related: About this forumAndrew Yang Policy on VALUE-ADDED TAX
A VAT is currently used by 160 out of 193 developed countries because it is a more efficient way of generating revenue with no loopholes. Big companies and rich people are excellent at moving things around to avoid taxes Amazon, Google, and other companies funnel hundreds of billions in earnings overseas. A VAT makes it impossible for them to benefit from the American people and infrastructure without paying their fair share.
"Taxing income is an increasingly ineffective and inefficient way to generate revenue over time. Take a company like Amazonit can do tens of billions in business and pay no income tax in a given period while storing its income overseas. A Value-Added Tax is much more efficient way to capture the true value of the American infrastructure and will be increasingly necessary over time as more and more work is done by software, robots and artificial intelligence. With a VAT of half the European level, we can pay for Universal Basic Income for all American adults of $1,000 per month."
Implement a Value-Added Tax at 10%, half the European level. Over time, the VAT will become more and more important to capture the value generated by automation in a way that income taxes would not.
This VAT would vary based on the good to which its applied, with staples having a lower rate or being excluded, and luxury goods having a higher rate.
Use the VAT revenue to pay for the Freedom Dividend of $1,000/month per adult, Universal Basic Income.
https://www.yang2020.com/policies/value-added-tax/
primary today, I would vote for: Undecided
Kaleva
(36,146 posts)primary today, I would vote for: Joe Biden
Which is the reason for my support.
primary today, I would vote for: Undecided
MH1
(17,537 posts)As soon as you say "value-added tax" people will think the price of necessities will increase.
He needs to show either why that won't happen, or how it will be offset.
I admit I only skimmed his page, and didn't see it. If there's something there that answers the question, please hit me over the head with it. (But don't expect other people to see it if I didn't)
primary today, I would vote for: Joe Biden
Sherman A1
(38,958 posts)My take away from reading it is that Income Tax is not a good means to best capture the revenue from all aspects of production/distribution process and this evens things out. Implicit (and I may be very wrong) in the stated policy was my thinking that Income Tax may be going away in this scenario. The devil is of course in the details.
primary today, I would vote for: Undecided
crazytown
(7,277 posts)That is the beauty of linking the two together. Assuming the VAT is universal, what it does mean is the $1000 / month is actually $909, if the VAT is fully passed on to consumers.
primary today, I would vote for: Undecided
MH1
(17,537 posts)So, a person in poverty is probably getting EITC and not even paying any net taxes. But if VAT is applied, they now pay more for most things they buy.
VAT may be a good idea. (or not, I don't know) But it's not a good campaign platform plank if it isn't spelled out clearly where people can understand its benefits. Yang's IQ is probably 40+ points above the average voter. But he doesn't have the manipulation skills of Trump (and hopefully doesn't have that inclination anyway). He can't just say "x is true" and expect people to believe it. He has to figure out how to reach voters at their level.
primary today, I would vote for: Joe Biden
Sherman A1
(38,958 posts)the taxes from companies that are paying nothing currently. A person in poverty is indirectly paying more because Amazon, Google, etc are paying zero as they (and the rest of us) do not benefit from the money not being collected. Those monies that are not being captured by our current system are not available to provide for the common good, through infrastructure, schools, health care, research and alike. So Yes, evens things out seems to be a good thing for us all.
primary today, I would vote for: Undecided
dalton99a
(81,070 posts)I actually like the guy - he's not going anywhere - but he raises some good issues
primary today, I would vote for: Joe Biden
Sherman A1
(38,958 posts)I am simply a person who supports his candidacy and have zero role in the process. As to him going anywhere, Time and the voters will make that choice.
primary today, I would vote for: Undecided