Could We Seriously Get the VAT?

Guest Writer
Owner of Make a Living Writing
min read
Opinions expressed by Entrepreneur contributors are their own.
value-added-tax.jpgWe all know our nation has spent a bundle trying to stimulate the economy again. It's been suggested that there's only one way out of this debt mess now -- the value added tax.

Better known as the VAT, the value-added tax is charged on retail goods and services. It's essentially a national sales tax that goes on top of state and local taxes charged. The entire European Union collects a VAT, which is typically steeper than sales tax here in the U.S. -- in Britain, for instance, it's 17.5 percent.

Rumblings about the VAT began months ago, with some observers insisting a U.S. VAT is inevitable because it's the only tax-funnel big enough to address our debt and help fund healthcare reform. Earlier this month, former Federal Reserve chairman Paul Volcker brought the subject up at a New York Historical Society meeting, saying the VAT should be discussed as a serious option.

President Barack Obama kept the VAT rumor going this week in a CNBC interview. When asked about the VAT, our chief executive did not rule it out. He noted it would be novel for the U.S....but also that it "has worked for some countries."

The road to a VAT would certainly be a contentious one, as the VAT would essentially raise prices on just about everything. Do you think a VAT is likely? How would the VAT impact your business? Let's continue the VAT chat in the comments.

More from Entrepreneur

Grow Your Business at Entrepreneur LIVE! Join us on Nov. 16 in Brooklyn, NY, to learn from legends like Danica Patrick and Maria Sharapova, pitch our editors, meet with investors, and potentially walk away with funding!
Register here

One-on-one online sessions with our experts can help you start a business, grow your business, build your brand, fundraise and more.
Book Your Session

In as little as seven months, the Entrepreneur Authors program will turn your ideas and expertise into a professionally presented book.
Apply Now

Latest on Entrepreneur

My Queue

There are no Videos in your queue.

Click on the Add to next to any video to save to your queue.

There are no Articles in your queue.

Click on the Add to next to any article to save to your queue.

There are no Podcasts in your queue.

Click on the Add to next to any podcast episode to save to your queue.

You're not following any authors.

Click the Follow button on any author page to keep up with the latest content from your favorite authors.