—Lancaster Farming. S«turd»! 24 If and when this country takes to the. value added tax, special provisions might be needed to lighten the load on farmers. Practically every nation now using the value added tax (VAT)' gives agriculture some kind of special treatment. They do so on these grounds— VAT is hard to administer when dealing with large numbers of small farms. Small farmers have problems keeping the records for levying the tax. Agricultural products should be taxed at a lower rate than others so as not to create hard ship for lower income families, who typically spend a large share of their incomes on food. Preferred treatment of far mers as providers of necessities is in the national interest. VAT comes in three varieties, but the one used by most other countries—and most often mentioned as a possibility for the U S —is the consumption type. In concept it is a tax on general consumptibn. It is not a tax on retail sales, since the VAT is levied at each stage of produc tion. However, the consumption type of VAT can lift the price paid by consumers. Puzzler How much of the VAT is shifted to the average shopper is debatable Tax experts them- April 14, 197! The Farmer and the VAT selves can’t agree on FAT’s contribution to price hikes in the midst of general inflation. Theoretically the full tax can be passed on the the consumer. This in fact was the expressed intention of the European Community (EC) when it first imposed the VAT in the late 1960’s as a replacer for a turnover tax. EC members, by the way, rely on the VAT for 24 to 40 percent of all tax revenues. In the EC the VAT works like this, albeit oversimplified; Each time a product changes hands the government collects a tax on the vklue added by the firm (gross sales less cost of purchased inputs). The firm then WHAT'S SO DIFFERENT ABOUT DARI-KOOL BOU-MATIC MILKERS? THE ANSWER TO THAT QUESTION IS ONE-MAN OPERATION CUTS LABOR COST 50% OPERATOR CAN MILK AT HIS OWN SPEED _r mmm &vt MILKERS i passes along the tax in the form In practice, however, the of higher prices, and gets forward shifting of VAT doesn’t reimbursed for the tax by* the quite mesh with theory. “Back next firm in the production- ward” shifting of the VAT is not distribution chain. (Continued On Page 25) RESULTS DARi-KOOL BOU*MATiC MILKING PARLORS Ik 'll ! j \\ ' '\l v' * .1 v \ \ » ¥""li DARI-KOOL - BULK TANKS BOW-MATIC PIPELINES & MILKING PARLORS SKENK’S FARM SERVICE 7 Day Week, 24 Hour Service R.D.4 Lititz, Pa. Ph. 626-4355 WITH A PARTS-SALES-SERVICE THE COWS ARE MOVED TO THE OPERATOR WALKING l& SEDUCED TO A MINIMUM <
Significant historical Pennsylvania newspapers