LOL!! A VAT tax has NEVER eliminated ANYTHING!!
Look at Europe.....for a perfect example of how terrible a VAT tax is.
LIKE ANY OTHER (NEW) TAX....IT ONLY CONTINUES TO GROW!!
No VAT!!
NO NEW TAXES!!!!
I thought we were talking about Ted Cruz's tax plan. Let's stop with the strawmans.
Cruz’ tax ELIMINATES the corporate and payroll taxes and simplifies taxation greatly, which eliminates a MASSIVE amount of waste that will boost the economy.
http://taxfoundation.org/blog/ted-cruz-s-business-flat-tax-primer
In that sense, a subtraction-method value-added tax is actually just a simple combination of a sort of corporate income tax and an ordinary payroll tax. (Fittingly, Senator Cruz’s plan uses this VAT to eliminate the corporate income tax and the payroll tax.)
There is a simplicity and clarity to this way of doing things that I think could appeal to people; it certainly appeals to a lot of tax experts. It avoids concerns about people trying to re-label one kind of income as another kind, because everything is subject to the same rate.
...
With this high VAT revenue (and much lower government spending than other OECD countries) the U.S. could sustain low income tax rates, such as the ten percent proposed by Senator Cruz.
...
Ted Cruz has proposed combining the corporate income tax, the payroll tax, and some of the income tax into a single, larger, broader tax assessed on businesses. While the tax would be new in many respects, it would produce revenues from the same general kinds of economic activity taxed by the things it replaces.
It would not be similar to existing sales taxes, or the VATs in Europe, because it would not be levied on a transaction-by-transaction basis.
Absolutely!