1 definition by Korgon
A tax added to an item to raise government revenue from every stage of production, cradle to grave. Referred to as a VAT tax. It was an idea proposed in 1918 and implemented in France in 1954.
The Govt wants to add a Value Added Tax, or VAT because they keep spending money and can't manage their money, as sales tax, income tax, and death taxes aren't enough. They need to keep raising money to support the middle and low income folk who in turn can't manage their money, so they will keep taking from them to help support them. An alternate solution is to prevent fraud in govt social programs and let people spend their own money.
by Korgon June 06, 2010