Sales Tax or Value Added Tax?
Now that the Excise Tax has been deemed unconstitutional, it seems likely that the administration will implement a new tax to replace it.
Should we implement a Sales Tax like most jurisdictions in N. America, or a Value Added Tax like they have in most European countries?
VAT in my opinion. A few reasons but one that it still allows the USVI to say it tax free to tourists who would not know any better. Since tourism plays a vital part in everything, this to me makes sense to be able to still market "tax free" to those who visit. I've read a few articles and most state VAT is a much fairer system, but I'm no expert.
What difference does it really make?
State Tax, Excise Tax, Value Added Tax, etc...
We all payed excise tax every time we purchased anything. Businesses that payed the excise tax simply passed on additional charges to customers to cover the excise tax.
Remember when diesel fuel cost less than regular gas? Few people complained when taxes were raised on diesel fuel because very few people drove cars that ran on diesel. Of course every ship, truck, and train burns diesel, so the cost of delivering everything was passed on to the consumers of products transported by ship, truck, and train. It was just another tax increase for everyone!
If you believe the VI is, or ever was, Tax Free, you’ll love Bernie Sanders “no out of pocket” Medicare for all plan!