[It is hard for people to “get” how 23% consumption tax can work, but a 9% consumption tax will allow them to see how it can work.]
So you’re saying that Americans are not capable of studying how the VAT Tax works in Europe; that we have be gradually spoonfed towards what I would consider to be another step towards full-blown Socialism. No thanks.
http://ec.europa.eu/taxation_customs/taxation/vat/how_vat_works/index_en.htm
From the Fair Tax website:
The FairTax is not a VAT. A VAT works very differently. It taxes every stage of production. It is much more complex and is typically hidden from the retail consumer. Second, in industrialized countries that have a VAT, it coexists with high-rate income tax, payroll, and many other taxes that, in some instances, have led to marginal tax rates as high as 70 percent. Third, all other industrialized countries, except Australia and Japan, have a much larger tax burden than the U.S., which requires higher rates and makes tax administration much more difficult. Lastly, a VAT is a lobbyist’s dream, allowing them to install their loopholes unbeknownst to the purchaser. A retail sales tax, in contrast, is a lobbyist’s nightmare, applied as it is under the bright lights of the retail counter.
http://www.fairtax.org/site/PageServer?pagename=about_faq_answers#45