Alas and alack the little people so often mistake a VAT tax for a sales tax. Ever wonder why? Because they are very similar. Close enough for me. A VAT sure isn’t an income tax. It is a tax on stuff I buy and amazingly enough so is a sales tax.
A sales tax and a VAT are quite different from one another, and you’re spreading misinformation by insisting they’re effectively the same.
As you can read from the very article you posted: “A VAT is essentially a national sales tax that is assessed at each stage of production”
Whereas a normal sales tax is a tax that’s only assessed once, at the point of retail sale.
The major difference between the two, and it is a big one, is that a vat is initiated at the manufacturer and at each level of sales the tax is increased, so by the time it gets to retail it has blown up quite a bit. A sales tax, which beats the he** out of a vat or income tax, is only applied at the retail level. The 999 plan would eliminate(ok, that is the hard part)the income tax, the corporate tax, and the sales tax we have now. Don't think we have a fed sales tax now? Guess again. We do have one on lots of items. Once the 9-9-9 plan has been in effect for a while the fair tax would take over.
The way to beat increases in taxes is to make sure your amendment(and it would have to be an amendment in order to dump the income tax)requires a 75%(not 60%, that is too low)vote in order to raise taxes, and both houses would have to vote on it.
When you say a VAT and a sales tax are one and the same(or close enough)you simply don't know what you are talking about. Plus, a national sales tax, with the correct safe guards, is far superior to an income tax. Everyone has to pay it, as long as they buy something they will be paying taxes. No more deductions for the rich or anyone, no free ride for the 47% who don't pay taxes now.
A flat tax, as some people are pushing for, is what we had to begin with and would eventually lead right back to a progressive income tax and all the evils inherent in that system.
Dennis,
You had better start doing a lot more homework than just reading talking points. I did and it was called a college paper on economics when the Flat Tax was being discusses and A VAT IS NOT ANYWHERE CLOSE to the sales tax component of the 999 plan. (keypoint to remember is “THIS” sales tax plan)
As said before, those who try to propagate this lie are either ignorant, stupid or politically disingenuous. Because of the nature of this site, I would say you are the latter but you still have the opportunity to prove me wrong, in a number of ways.
If you have to lie and call 9-9-9 a VAT to make your argument, you’re losing.
Further, tell me why it is ok to have a system where government hands out favors to some corporations who pay little or no tax while their competitors do not have that luxury and what that does to the price of goods and services.
Finally, defend income tax as the "fairest" method of taxation when many wealthy individuals have little or no "income" at all, and those here illegally are operating in a cash economy where they are not taxed either.
and since you have such a great understanding of the VAT, please explain cost of compliance of a VAT vs. final point of sale tax and how that effects the cost of goods and services.