Replies

There is a huge difference. A value added tax (VAT) is added at each stage of production. A sales tax is only at the final transaction between consumer and retailer.

Manufacturers will not have to pay a 9% tax on the materials they buy to produce a product. Under a VAT they would. Retailers will not have to pay a 9% tax on products they buy to sell to the consumer. Under a VAT they would. Do you consider the sales tax a state has now a VAT? The best thing about the 9-9-9 plan is everything is out in the open and the voter can see the direct impact on the price they pay or their paycheck each week. This will make it politically much harder to raise taxes, because everyone will be affected immediately by any increase in any on the rates.