What’s the Best Way to Tax Consumers? VAT vs. Sales vs. GRT

A value-added tax is a tax on each step of the supply chain.

For example, if America had a 20% VAT then if you bought iron ore for $60 then how much would you have paid in VAT?

$10.

And then if you turned your iron ore into a bicycle and sold it to a bicycle shop for $120 then how much would you have collected…