How is the failed sales tax in Europe different from what is being presented here in the US?
Link to the Boortz/Linder book.
How is the failed sales tax in Europe different from what is being presented here in the US?
The FairTax legislation implements a retail level single stage, single rate tax at purchase for final consumption only, and repeals all federal income, payroll, and gift/estate taxes.
The European "sales" tax on the other hand is collected from all purchases by businesses as well as consumers up and down the chain of production and is always implemented with income and/or payroll taxes as well.
In fact the European VAT is merely a modification of the pre-WWII business turnover & transaction taxes of Europe that cascade piling tax on tax thoughout economies. The EU VAT introduced credit/voucher system to partially credit business purchase taxes for inputs when materials and goods were sold to succeeding businesses in the chain of production to reduce the compounding components of business purchase taxes and did nothing to remove income, payroll or other taxes, including retail taxes that exist in European economies.
The European systems guarantee a moribund economy throught he high impositions and extremely burdensome and costly red tape regulatory environments on its industy and businesses at all levels.
The FairTax legislation have none of the component of the European tax systems causing their extreme economic problems.