[Alberta's Child]

One big advantage of the VAT is that it is highly regressive. It basically turns everyone into taxpayers even if they don't report a single penny of income on a tax return.

It's also worth noting that the VAT is only really an effective revenue source in a modern economy where people enjoy a high standard of living. In other words, it only works when most people buy things rather than producing or growing things themselves. That's why it is imposed in places like Europe and modern Asian nations, but is probably unheard of in places like Africa and Third World countries in Asia. The VAT is a pointless tax in an agrarian society where people don't buy very much.

[xzins]

I’m in favor of a repeal of the income tax. Only after that repeal is finalized am I in favor of a national sales tax. I don’t want a sales tax and an income tax at the same time. That is a recipe for a politician to steal more than they already are.

I DO think that the sales tax should be on everyone with zero exceptions. If I buy a donut, I should pay tax. If Procter and Gamble buys trees to make Bounty Paper towels, then they should pay the sales tax.

Period. No exceptions. If a church buys Johnson wax to wax the floor, then they pay the sales tax. They are KNOWINGLY making a decision to buy.

As soon as someone or something gets an exception, then it won’t be long before we’re back to picking winners and losers.

Also, if it is everyone and everything, then it will be much lower than if someone comes up with a boatload of exceptions.

[dhs12345]

Just as long as they get rid of the current system if/when they add the VAT. Worst case we'd get stuck with both.

Also, the bureaucrats wouldn't like it — too much control of the revenue stream in the hands of the taxpayers. Revenues dry up if people stop buying stuff.