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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory
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To: I_C_Deadpeople who wrote (55013)3/1/2006 9:37:23 PM
From: KyrosL  Read Replies (1) of 110194
 
Europe is doing OK with a VAT of 18% and gas tax or around $3 a gallon on the average. No implosion there. And they have a trade surplus too. Deficits? You can eliminate them all if you don't reduce other taxes as much as the VAT and gas tax will bring in. The big losers of a VAT that excludes essentials like food and medicine will be China and other importers whose goods will bear the brunt of a VAT. And, of course, a hefty gas tax will drastically reduce imported oil.
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