5 Many socialist nations In Europe are forced to use the "value-added" tax concept to raise money that is desperately needed to support their very costly social programs that offer free healthcare, free education, generous welfare programs, and lucrative government pension payout that often allow people to retire as early as age 50. What are value-added taxes and who pays these taxes in Europe? Skipped Multiple Choice O Value added taxes are simply taxes on investments and financial transactions. Only investors or people who are carrying out some type of financial transaction pay these taxes. O As products are Improved at every step of production (1.e, raw dirty oil, refined oil, and then ultimately gasoline) a value added tax kicks in and the firms that are improving the product must pay taxes to the government. In the end, the retail prices paid by the consumer are much higher. In reality it is the consumer who paying for all this so-called "free stuff." O Value added taxes are simple taxes on a person's wealth or another name would be a wealth tax. Only richer Europeans pay these value added taxes. O Value-added taxes are simply taxes on income and everyone must pay this tax