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To: Your Nightmare
Actually, the way I see it, the selling point of a VAT is that it can generate the same revenue as a sales tax with a lower rate. I don't see anything wrong with that picture. (#6)

How could that be, mathematically?

The Retailer sells his product for $100 and adds a 20% tax at the register and the government collects $20 on a $100 sale, just like a NRST. There is no difference to the customer. It's fully visible and there is no extra tax burden to any producer down the chain.(#9)

What about FICA? Does the VAT take care of that or is it collected separately and 15% more added to the VAT, making the comparable tax 35% instead of 20%?

53 posted on 10/10/2005 10:21:35 AM PDT by Mind-numbed Robot (Not all that needs to be done needs to be done by the government.)
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To: Mind-numbed Robot
Actually, the way I see it, the selling point of a VAT is that it can generate the same revenue as a sales tax with a lower rate. I don't see anything wrong with that picture. (#6)
How could that be, mathematically?
The VAT is harder to evade. Less evasion mean you can generate the same revenue with a lower rate.
62 posted on 10/10/2005 11:12:39 AM PDT by Your Nightmare
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