[USFRIENDINVICTORIA]

Sorry, but I’m not buying this (too high a tax on credulity). Canada had a national consumption tax at 8%, without the drop in sales this article claims resulted in Japan. When it was lowered by a couple points, we also didn’t see a big jump in consumption. Same goes for Europe, and many other countries with consumption taxes.

High aggregate taxes are a concern — but, consumption taxes actually disrupt the economy less than income taxes.

[thackney]

The point was with an announced rise coming in the tax rate, many people bought in advance, particularily more expensive items. Over time it will likely level out. But a increase before the tax rate and a decrease immediately afterwards seems reasonable.