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Value Added Tax

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BUSINESS
September 7, 1989 | From Associated Press
More than 40% of chief executives surveyed nationwide favor introduction of a value-added tax to help reduce the federal deficit, according to a report released Wednesday. But the report by the Conference Board offered mixed conclusions on whether the enormous revenue potential of a value-added tax, or VAT, outweighs its drawbacks.
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WORLD
October 18, 2013 | By Tracy Wilkinson
MEXICO CITY - It may soon cost more to get fat in Mexico. New taxes on high-calorie junk food and sugary drinks were approved by Mexico's lower house of Congress in a marathon 18-hour session that ended Friday morning. They are part of a broader package of taxes and other fiscal changes proposed by President Enrique Peña Nieto aimed at generating nearly $20 billion for the national treasury. Mexico has one of the world's highest rates of obesity, recently surpassing the United States, and bigger price tags on chips, candy and other chatarra - or junk food - are being applauded by health experts.
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BUSINESS
November 21, 2007 | From Reuters
The U.S. Treasury on Tuesday wouldn't comment on a report that it will float the idea of a value-added tax as an option to pay for reduced corporate income taxes. A report due soon from the Treasury discussing ways to make the U.S. business tax structure more competitive will include a VAT, or national sales tax, CNBC reported, citing an unnamed Treasury official.
OPINION
May 24, 2010 | Leo Hindery Jr. and Michael Lind
Does America need a VAT? The short answer is "yes." Influential figures, including Bruce Bartlett on the right, Paul Volcker in the center and House Speaker Nancy Pelosi on the center-left, have suggested that a value-added tax of the kind used by other modern governments be considered as a principal means to reduce the federal deficit. Although the White House has emphasized that there are no immediate plans for a VAT, President Obama told CNBC that a VAT is one of the major tax-reform alternatives being considered to close the budget gap. But the case for adopting a federal VAT does not rest on deficit reduction alone.
TRAVEL
September 22, 1985
Tourists in Norway will receive more prompt reimbursement of the value-added tax (VAT) on Norwegian consumer goods. Instead of being reimbursed by mail after the visit has ended, tourists will be repaid the VAT in cash upon leaving the country. When buying a product, the tourist will be issued a check indicating the amount of tax to be refunded (12.5%). Upon departure from the country, the money will be paid out against proof of purchase and showing of passport.
NEWS
January 2, 1987 | From Reuters
Greece introduced a value added tax Thursday on goods and services. Finance Ministry figures show that the tax will range from 6% on widely consumed goods such as dairy products and wine, to 18% on items like soap and textiles and 36% on luxuries such as cigarettes, cosmetics and coffee. Ministry officials said that although the tax was formally introduced Thursday, it will not become effective until February, when a three-month price freeze imposed by the Socialist government comes to an end.
CALIFORNIA | LOCAL
February 18, 1988
Kuttner points out that liberals may be in favor of an $80-billion VAT. The liberals can then pursue their spending programs using the resulting tax windfall. However, a tax of this magnitude on top of state sales taxes of up to 8% would crush consumer spending and cause the next recession. Increased taxes will not solve the budget deficit as long as Congress increases its spending in lock step with the incoming revenues. Congress must place strict limits on its own spending before raising taxes.
TRAVEL
July 17, 1988 | ERIC FRIEDHEIM, Friedheim is editor/publisher of Travel Agent magazine.
Question: As a tourist, can I obtain a refund on the value-added tax I paid on my hotel bill in Britain? Answer: VAT is refunded only on goods you take out of the country, not on accommodations. Q: I was charged extra for driving a rental car across a state line. Is this legal? A: Car rental firms make their own rules, which differ from company to company. Q: How can I beat the high surcharges by some foreign hotels when I call home? A: You can use several U.S.
TRAVEL
June 15, 1986 | PETER S. GREENBERG, Greenberg is a Los Angeles free-lance writer.
Not long ago, I was in London and made the typical American tourist pilgrimage to Harrod's. I entered the department store confident of my purchasing power. Twenty minutes later, as the saleswoman added up the damages, I was shocked. Immediately, I had visions of the American Express SWAT team surrounding my house demanding payment. The total for goods I had bought was much higher than I expected. Not to worry, the clerk assured me. I qualified for a hefty VAT refund. I filled out some forms.
BUSINESS
April 16, 1993 | KATHY M. KRISTOF
The crushing cost of health care has prompted the Clinton Administration to revive consideration of a controversial tax plan to finance a sweeping program of reform. Alice Rivlin, deputy director of the Office of Management and Budget, this week called the value-added tax--better known as VAT--"a possible candidate" for financing health care reform, even though President Clinton earlier had denied that a VAT was in the offing.
WORLD
October 13, 2008 | Ramin Mostaghim and Borzou Daragahi, Special to The Times
Economic anxieties caused in part by the West's financial crisis have escalated tensions between President Mahmoud Ahmadinejad's government and Iran's merchants as the country's economic lifeblood, oil, headed below $80 a barrel for the first time in more than a year.
BUSINESS
November 21, 2007 | From Reuters
The U.S. Treasury on Tuesday wouldn't comment on a report that it will float the idea of a value-added tax as an option to pay for reduced corporate income taxes. A report due soon from the Treasury discussing ways to make the U.S. business tax structure more competitive will include a VAT, or national sales tax, CNBC reported, citing an unnamed Treasury official.
OPINION
September 4, 2004
Re "A New Money Machine for the U.S.," Opinion, Aug. 29: Bruce Bartlett argues in favor of a value-added tax as a solution to the projected increase in Social Security, Medicare and Medicaid spending. Federal Reserve Chairman Alan Greenspan has a better idea. Avoid the need for increased transfer payments by increasing the retirement age to 70 and up as life expectancy increases. Death rates for males 65 to 74 have dropped 31% from 1960 to 1989 and are still decreasing. And why adopt a European creature, the VAT, needed to fund its common-market government?
OPINION
August 29, 2004 | Bruce Bartlett, Bruce Bartlett is a senior fellow at the National Center for Policy Analysis.
The United States needs to adopt a value-added tax. Passage of the prescription drug legislation last year demonstrated that there is no longer any hope of holding the line on government growth -- especially when Republicans voted for the multitrillion-dollar entitlement program. That being the case, the only relevant question is how to finance the growth of government. A value-added tax, or VAT, isn't the complete answer. Other taxes are also going to rise.
OPINION
February 3, 2002 | SERGIO SARMIENTO
A few days ago, I tried to do something that used to be quite simple--I requested a restaurant receipt so I could deduct a business lunch on my Mexican income-tax return. A bureaucratic nightmare then began. I was asked by the restaurant to provide a copy of my Mexican Federal Income Registration. I offered the one I always carry in my wallet but was told I would need a photocopy, as the restaurant would need to keep a copy. I was also asked to provide a signed letter swearing that I would indeed deduct the business lunch from my taxes--or be subject to an unspecified penalty.
CALIFORNIA | LOCAL
October 11, 1997
Rep. Dick Armey (R-Texas) and Rep. Billy Tauzin's (R-La.) commentary, "Should We Scrap the System . . ." (Oct. 5), fails to emphasize a most fundamental issue in the debate between the present progressive income tax and the alternatives of flat tax and sales tax. The current tax and the flat tax will always favor the rich because they only tax "taxable income." It is true that the rich pay taxes at a higher rate than others, but they only do so on their taxable income, which is usually an extremely small portion of their total income.
TRAVEL
October 27, 1996 | TIMES STAFF AND WIRES
Series tickets go on sale Friday for the Santa Fe Opera's 1997 season, scheduled June 27 to Aug. 23. Individual tickets go on sale Feb. 1. Reservations: (800) 280-4654. . . . Switzerland got slightly less expensive this month, having cut its value-added tax for hotels to 3% from 6.5%.
BUSINESS
August 2, 1995 | Times Staff and Wire Reports
France Raises Value-Added Tax: The two-percentage-point increase brings that country's value-added tax to 20.6%, making it one of the European Union's highest. The move is part of the new government's efforts to cut public debt and deficits. Only food and cultural goods--from circus tickets to books--will continue to be taxed at the lower 5.6% rate.
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