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Sales Tax or Value Added Tax?

 

vicanuck
(@vicanuck)
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Joined: 13 years ago
Posts: 2843
April 12, 2019 1:46 pm  

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?


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daveb722
(@daveb722)
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Joined: 8 years ago
Posts: 789
April 12, 2019 5:56 pm  

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.  


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Exit Zero
(@exit-zero)
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Posts: 2453
April 12, 2019 7:18 pm  

It would seem like an increase in the Gross Receipts tax already in existence would be the most likely tax structure change to pass the Legislature.


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singlefin
(@singlefin)
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Joined: 9 years ago
Posts: 1016
April 13, 2019 3:31 pm  

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!


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Exit Zero
(@exit-zero)
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Joined: 15 years ago
Posts: 2453
April 13, 2019 6:48 pm  

There is a difference in taxes, some are paid one time and then that one time cost is passed on.

The Gross Receipts tax is added each time a business touches the taxed item, a very regressive tax and one that increases the cost of goods and services with a multiplier effect.


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