[Principled]

Any flat income tax IS by definition a subtraction method vat. The flat income tax you’ve heard about before 999 is a subtraction method vat. That’s one of the major reasons i do not want a flat tax.

I credit Cain for starting a fruitful discussion - in fact what I predicted he’d do. I had no idea he’d get this big... wonder if he’ll survive tonight.

Anyway, the measure I support is NO income tax and ALL retail sales tax.

[Cobra64]

I disagree. The conventional definition of a VAT Tax is a tax that applies, to all commercial activities involving the production and distribution of goods and services.

At each step of added value in the production and distribution of goods a tax is paid.

Cain's consumption tax is at the retail consumer level; the end of the supply chain. Someone buying a pair of shoes would pay a 9% consumption sales tax. A steel producer would not pay consumption taxes because they are not the retail, end-user/consumer.