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To: MSF BU
"A VAT would capture a lot revenue from folks in the black economy"

How so? Why would a VAT, or any tax, capture revenue from the distribution of illegal goods, in a illegal supply chain, illegally distributed to retail buyers?

It seems to me that one of the primary goals of the black market is to avoid things precisely like VATs.

14 posted on 06/26/2010 10:22:22 AM PDT by OldDeckHand
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To: OldDeckHand
How so? Why would a VAT, or any tax, capture revenue from the distribution of illegal goods, in a illegal supply chain, illegally distributed to retail buyers?

Drug dealers don't pay income taxes on the drugs they sell, but they would pay VAT on the food and bling they buy.

20 posted on 06/26/2010 10:48:18 AM PDT by PapaBear3625 (Public healthcare looks like it will work as well as public housing did.)
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