DSK wrote:
Dave wrote:
Since I'm not planning to do that soon, could you summarize what they say on
why and integrated business has a VAT advantage?

A vertically integrated business has two main advantages:
control over a wider range supply cost versus sale price,
thus more control over their VAT costs; and economy of scale
with respect to VAT accounting.

The VAT is levied differently and can get complex, but my
understanding is that many international companies can
assign prices/costs to materials/goods as they move between
divisions of the company, also they don't have to pay
tariffs when materials/goods (not finished products) are
shipped across borders.

Another of my objections to VAT is that it is complex &
expensive to administer. It is inefficient. Another is the
moral position that it encourages cheating. Taxes should be
simple, transparent, and efficient.

Well, that wipes out pretty much everything except a flat rate income
tax starting at $1 and a consumption tax with no exceptions levied at a
flat rate. I thought you were opposed to both?

As to VAT's, Australia now has a VAT levied at 10% on pretty much
everything except raw foodstuffs. The world hasn't ended. The big thing
to watch for is rate creep and ancillary tax creep as insatiable govts
keep looking for more revenue. I don't trust governments not to keep
raising taxes at the margin which is why you want it simple & obvious.

PDW