[wouldntbprudent]

How does a sales tax (or VAT, whatever it is called in its discussion mode carnation here) figure in---in lieu of income tax or in addition to very very modest income tax rates?

Doesn't that seem to be about the only way to "raise" taxes when the economy is good and "automatically" "lower" taxes when the economy starts slowing?

Does Laffer address this type of tax? I don't know much about tax policy, but it seems like this is a way to build the Laffer curve into tax policy.

[kenavi]

How does a sales tax (or VAT, whatever it is called in its discussion mode carnation here) figure in---in lieu of income tax or in addition to very very modest income tax rates?

Europe uses the VAT. It is a hidden tax, because businesses must include it in the price they charge the consumer. With VAT, taxpayers have less of an idea of the tax burden, which increases the likelihood that taxes will remain high.

Does Laffer address this type of tax? I don't know much about tax policy, but it seems like this is a way to build the Laffer curve into tax policy.

Laffer regularly surveys the tax burdens imposed by the 50 states, which includes sales taxes as well as state income taxes. I've never seen him boost sales taxes as a better alternative than income taxes. IMO, people who boost sales taxes do it as a means of social control (e.g. gas taxes, alcohol excise taxes, cigarette taxes).

General sales taxes can be regressive, that is they tax the poor at a higher percent of their incomes than the wealthy, since the poor have to spend a higher percent of their incomes to buy the necessities of life.