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Politics : Liberalism: Do You Agree We've Had Enough of It? -- Ignore unavailable to you. Want to Upgrade?

To: TideGlider who wrote (97121)	1/20/2011 3:27:52 PM
From: TimF	Read Replies (1) \| Respond to of 224858

I actually believe a Federal sales tax or VAT tax might be even better if the current income tax was repealed, but only if it was repealed. Such a tax would draw cash from illegal enterprises as well. It would in a sense, but in an important sense it really wouldn't. Yes they would pay taxes when the spend money, but they wouldn't collect the tax on their illegal services. Whether on the net their effective tax burden increases is a complex question, but I think its fair to say that they would at least still effectively be paying less taxes than those who stay within the law. I believe VAT would only be added at one point in the chain. A normal VAT would be added at every point that value is added. A sales tax might only be on retail sales. Some other type of tax that was collected at only one point but at a point before retail would be unusual, I'm don't know of any specific name for it, it isn't what is normally meant by a value added tax.