|
A VAT is a very effective form of taxation since it gathers revenue for the government at the comsumer level. My main concern would be the underground economy it would create. How would the government enforce it? How would the government protect those below the poverty line? A flat tax on comsumption would be unfair to those that earn less.
The most important issue would be to repeal the 16th Amendment before instituting a sales tax. If it isn't repealed first, the government would likely collect both an income tax and a sales tax!
What about local governments right to impose a sales tax? A 24% national sales tax plus the local Bay Area sales tax of 8.25% would lead to a total of 32.5% tax on comsumption plus California residents would still pay 5-9% state income tax! Sales tax isn't a deductable expense.
__________________
Make Levees, Not War
|