I warned just last week about the dangers of letting politicians impose a value-added tax.
Simply stated, unless the 16th Amendment is repealed and replaced with a new provision forever barring the re-imposition of any taxes on income, a VAT inevitably would be a new source of revenue and become a money machine to finance ever-larger government.
Just look at the evidence from Europe if you’re not convinced.
That’s why the VAT is bad in reality.
Now let’s talk about why the VAT (sometimes called a “business transfer tax”) is theoretically appealing.
First and foremost, the VAT doesn’t do nearly as much damage, per dollar raised, as our current income tax. That’s because the VAT is a single-rate tax (i.e., no class warfare) with no double taxation of income that is saved and invested.
In some sense, it’s a version of the national sales tax, except the revenue…
View original post 849 more words
Utopia, you are standing in it! 
Recent Comments