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To: NYFriend
"That's the attraction of the Value Added Tax over the a pure sales and use tax." (In response to LowCountryJoe)

I'm not sure what attraction you were referring to, since LCJ has posted several times on this thread.

However, the major disadvantage of a VAT is that it is not highly visible, as is a sales tax. In fact, one of Dick Armey's favorite criticisms of our proposal is that sales taxes always turn into VATs. If that were true, then most of the states would have VATs and to date none do.

We believe that a sales tax, because of its visibility, would serve to exert downward pressure on the rate, especially if we resisted the tendency to allow special interests to put all sorts of special interest preferences into what is, at this point, a very clean and simple proposal.
123 posted on 02/12/2004 7:13:38 AM PST by phil_will1
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To: phil_will1
...We believe that a sales tax, because of its visibility, would serve to exert downward pressure on the rate...

Damn straight it would! Unless I've totally underestimated the stupidity of the constituency.

Now, what would individual states likely do to get their cut of tax revenue? Tack on addition percentages in addition to the NATIONAL sales tax, only tax income - through withholdings & returns, or some combination of these two just as it is done now?

134 posted on 02/12/2004 10:53:51 AM PST by LowCountryJoe (Shameless way to get you to view my FR home page.)
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