And salary expense will not be deductible for the employer - will be included in the VAT.
Has nothing to do with manufacturing. It is added at each point in the economic process where value is added. Even, so, it isn't part of the flat tax.
VAT's are also neither progressive nor regressive. Where they fall on the scale depends entirely on what processes are exempted. Most regressive elements are removed either via credits or by exempting specific items, like food.
In any case, my point stands. The author is an economic illiterate. There is nothing intrinsically wonderful about "progressive" taxation. All it means in theory is increasing the rate as income increases. What it means in practice is dividing people by income classes and envy.