“A type of consumption tax that is placed on a product whenever value is added at a stage of production and at final sale. Value-added tax is most often used in the European Union. The amount of VAT that the user pays is the cost of the product less any of the costs of materials used in the product that have already been taxed.” -Investopedia
Opinions on the value added tax are wide ranging. Here’s Martin Feldstein and Robert Reich debating:
What do you think of the value added tax?
