Canada has it. Every other major industrialized economy has also adopted it. When it comes to the value-added tax, the U.S. is the only outlier. Proponents of the VAT say the system is superior to the sort of retail sales taxes currently imposed by many U.S. states. It's simpler to enforce and discourages evasion. More importantly, it provides a broad enough tax base to enable governments to lower income taxes and maintain current spending. The VAT is applied at every level of production on most goods and services. Businesses collect the tax on what they sell, and they receive credits for taxes paid along the supply chain. So in effect companies pay a levy only on the value they add in production.
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