I do like the concept of a sales tax replacing income tax. I’m also a maker and seller of products. As such, I worry that a dramatic increase in price will dramatically reduce sales and I do not want to become an unpaid tax collector.
Cutting a ton of taxes and simplifying things won’t balance out on your books? Are you sure?
And that is why a VAT does not work
Yes, you income taxed 40-50% of my earnings, now you want to take another 30% as I spend it.
A VAT, as I understand it, is a multi-tax on all goods sold. A business buys iron ore? Then the smelting plant is taxed. Then the screw factory gets screwed. Then each layer of distribution gets taxed. Most if not all of the taxes are hidden.
A national sales tax is 100% visible.
Big difference.
The VAT is what hurts Europe’s economy. Link just above this post. FRegards ....