The US tax system relies more on income and sales taxes rather than a VAT, which fits its historical and political context, though debates about reforming tax policy are ongoing
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The US tax system relies more on income and sales taxes rather than a VAT, which fits its historical and political context, though debates about reforming tax policy are ongoing
What is the difference between a sales tax and VAT?
Sales tax is applied once at the point of sale while VAT is charged at each production step, allowing businesses to reclaim taxes on inputs, effectively spreading the tax across the value chain