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To: FCom777 who wrote (36953)	8/26/2012 10:59:52 PM
From: Hawkmoon	Read Replies (1) \| Respond to of 218583

I really like the idea to entirely eliminate the income tax code and replace it with a sales/VAT tax alternative. I tend to concur with you.. But then I think to myself, "if government politicians have an interest in raising worker salaries so that they can increase their "cut" from income tax revenues.. a VAT would undermine that by taxing spending.. " In sum, a consumption tax would require political policies that only encourage excessive consumption in order to fill gov't coffers. And to increase the amount of that money they receive, there is an inducement to increase the price of products subject to a VAT. Hence, a VAT may actually be fundamentally inflationary. Hawk