What’s the Best Way to Tax Consumers? VAT vs. Sales vs. GRT
5 min readSep 29, 2023
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…