[fightinJAG]

You may be right about that.

My experience with VAT, such as it is, was in Europe.

Anyway, I think we agree that the 999 plan does away with embedded taxes in the price of goods?

[Royal Wulff]

I'm just learning about it myself. The Wikipedia page on VAT has an interesting analysis that shows that the effect of a sales tax and a VAT are identical in terms of revenue raised and gross margins for the businesses in the chain.

The difference is in the incentives that a sales tax provides for people to cheat, and the additional paperwork required to keep track of VAT taxes paid.

But, all other things equal, a sales tax and a VAT tax, at the same rate, would produce the same tax revenue and the same gross margins.

I agree about the hidden taxes being removed.

And I like the incentive that a sales tax provides consumers to save money (for investment or retirement) instead of spending it.