Value-Added Tax
Value Added Taxes are not found too often in the United states, but many countries over in Europe have them. It is when a consumer of a product must pay taxes for a product for the difference in the amount between the costs of production, and the price paid. It is a take on the value that is added to an item by having it made. For example. The parts of a car are not worth what a car are worth if they are all seperate. There is value added to the car when it is actually assembled. This is what a value-added tax is taxing, the value added when the car is assembled.