Reply #6: The VAT must be paid at the point of sale. [View All]

[JDPriestly]

The VAT is paid by the purchaser of the finished product in which the steel is used. It adds to the cost of the product for the end user, but in a way that provides taxes to the government and therefore revenue that can replace some of the taxes that would normally be collected from the paychecks of the American workers who would be paid to make the steel if it were made in this country. It is a way of increasing the cost of all products equally. The VAT will only help the economy and encourage job creation if it replaces some of the existing income taxes. It should not be added on to the income taxes we have but rather replace the income taxes that are lost due to outsourcing and importing.