News Flash: The IRS Is Obsolete

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 www.merriam-webster.com

 

 

 

 

 

 

 

 

 

 

 

when corporate giants like Detroit-based DTE Energy want to save

 

millions, they turn to Washington, D.C., lobbyists.

 

The energy services provider relied on its lobbyists-not

 

accountants- when the Internal Revenue Service began reviewing,

 

in 2003, a controversial tax credit that benefits it and other

 

companies that turn coal into synthetic fuels. But after only four

 

months of investigation and heavy industry pressure on Congress

 

and the IRS, the agency dropped the inquiry, preserving the

 

program that gave DTE Energy more than $200 million in tax

 

credits that year.

 

 

 

 

 

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Mary008

 

 

 

 

 

 

 

 

 

 

Just click on a question to see the answer...

Frequently Asked Questions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Before and After the FairTax
Jump-starting the U.S. stock market and economy. Reviving the "Made in the USA" label. No longer fearing Tax Day, April 15th. Keeping your whole paycheck for a change...

Sound great? This is just a taste of how things could be with the FairTax. And compared to our dreaded federal income tax system now, well, let's just say there's just no comparison.

You can help: Take a moment to send one of our "Before and After the FairTax" eCards to make sure everyone knows there is a better way.

 

 

 

 

 

 

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Mary008

 

 

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Mary008

 

 

 

 

 

 

 

 

 It is a tax on the "value added" to a product or material, from an accounting view, at each stage of its manufacture or distribution. The "value added" to a product by a business is the sale price charged to its customer, minus the cost of materials and other taxable inputs.

 

 

 

A VAT is like a sales tax in that ultimately only the end consumer is taxed. It differs from the sales tax in that, with the latter, the tax is collected and remitted to the government only once, at the point of purchase by the end consumer. With the VAT, collections, remittances to the government, and credits for taxes already paid occur each time a business in the supply chain purchases products from another business. The reason businesses end up paying no tax is that at the time they sell the product, they receive a credit for all the tax they have paid to suppliers.

 

 

 

Maurice Lauré, Joint Director of the French Tax Authority, the Direction générale des impôts, was first to introduce VAT on April 10, 1954, although German industrialist Dr. Wilhelm von Siemens proposed the concept in 1918. Initially directed at large businesses, it was extended over time to include all business sectors. In France, it is the most important source of state finance, accounting for nearly 50% of state revenues.[1]

 

 

Personal end-consumers of products and services cannot recover VAT on purchases, but businesses are able to recover VAT (input tax) on the products and services that they buy in order to produce further goods or services that will be sold to yet another business in the supply chain or directly to a final consumer. In this way, the total tax levied at each stage in the economic chain of supply is a constant fraction of the value added by a business to its products, and most of the cost of collecting the tax is borne by business, rather than by the state.

 

 

Value Added Taxes were introduced in part because they create stronger incentives to collect than a sales tax does. Both types of consumption tax create an incentive by end consumers to avoid or evade the tax. But the sales tax offers the buyer a mechanism to avoid or evade the tax--persuade the seller that he is not really an end consumer, and therefore the seller is not legally required to collect it. The burden of determining whether the buyer's motivation is to consume or re-sell is on the seller, but the seller has no direct economic incentive to the seller to collect it.

 

The VAT approach gives sellers a direct financial stake in collecting the tax, and eliminates the problematic decision by the seller about whether the buyer is or is not an end consumer.

 

 

 

 

 

 

 

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Mary008