So the selling point on VAT is that it allows the gov't to raise taxes higher than under a sales tax regime because there is less tax evasion? Do you see something wrong with that picture?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.
when gov't tax collection becomes more efficient, is the natural tendency of politicians to increase or decrease taxes as a result. Put another way, when from time to time, various states run budget surpluses, does that usually result in the gov't cutting taxes in order to eliminate the surplus or in the gov't keeping tax rates the same and spending the surplus on things the gov't deems to be worthy causes?
That's not a selling point of the VAT. Check the U. S. Treasury Dept. which has estimated that the sales tax (as opposed to the VAT) and the VAT would have the same rate. Or perhaps you prefer to believe the Indian government which is trying to get a country-wide VAT???
BTW, Nightie, what has happened to your beloved Nightmare Flat Tax??? Now that you see it is finished, have you now switched to a Nightmare VAT?