A VAT (value added tax):

Question

Quizplus · Accepted Answer

The statement "Has proved quite popular outside of the U.S." is correct, as VAT is widely used in various countries outside the US, including in Europe, Asia, and Africa. However, the other statements are incorrect. VAT is considered regressive in its effect, as it tends to burden low-income households more heavily than high-income households. VAT is a tax on consumption, as it is added at each stage of production and distribution of goods and services. Finally, VAT is not used exclusively by third-world countries, as many developed countries have implemented it as well.

A VAT (Value Added Tax)