Which of the following statements about a value added tax (VAT) is false?
A) Many countries use a VAT.
B) The U.S. has imposed a VAT since 1913.
C) A VAT has been proposed in the U.S. to replace part of the income tax.
D) A VAT operates similarly to a sales tax.

Question

Quizplus · Accepted Answer

The U.S. has not imposed a VAT since 1913. In fact, the U.S. currently does not have a VAT system, although it has been proposed as an alternative or supplement to the current income tax system.

Which of the Following Statements About a Value Added Tax