In Fear Of The VAT.

It is said that ignorant people are afraid of things that they do not understand.

I can actually see the merit in this statement.

I'm afraid of the Value Added Tax (VAT) which is prevalent in Europe and an "idea" that I'm hearing more and more of in this country. To me, the VAT is socialism where the government decides the direct allocation of resources instead of the markets influenced by private sector consumer demand, which also to me runs against the grain of capitalism and freedom.

Let's do an example: We have just left the showroom with a brand new Lexus Is 300h an incredible car, a cream puff that retails for $37,000.00+ it's got a leather interior and all the toys...  The State of New Hampshire is going to charge a plate transfer fee and the registration; and it will be the same whether you live in gated community Bedford or the cold frigid of Colebrook. It's a standardized scale that the state uses. Let's say for the sake of argument that the fees on this day were $750.00.A purchased Lexus IS 300h Is Subject To State Tax Policy.

The Value Added Tax (VAT) as I understand it is tax policy that only charges for what the consumer actually uses while promoting long-term policy at the same time. So it works like this: the consumer isn't going to consume $37,000.00 right up front, the vehicle is going to be used over time and it depreciates in value. So with this in mind the consumer would be charged say $150.00 to transfer and register the Lexus while use of yearly mileage over 7,000 miles would be taxed at .15 cents a mile. So you might be thinking what does the VAT accomplish? Quite alot actually, less cars on the road means less highway maintenance costs, less police expense, less accidents and the list continues on. More people will use rail and bus if these means of transportation are available. Meanwhile the consumer can still purchase a Lexus Is 300h and be paying for what they use and nothing else. The government doesn't have to tax more because they've saved more by only taxing and setting usuage policy on the value that is actually added.

I'm still in fear of the VAT.