In response to:

New International Monetary Fund Study Inadvertently Provides Very Strong Evidence against the Value-Added Tax

Archie1954 Wrote: Nov 02, 2012 12:58 PM
The VAT is not that bad! It quickly becomes a part of the cost of every purchase that you automatically calculate and take into account when you buy something. The one thing that I like about it most is that it is the only tax that the consumer can decide to pay or not. If he doesn't want to pay it, he doesn't buy the article to which it attaches.
MatthewlovesAyn Wrote: Nov 02, 2012 1:57 PM
You don't have to pay the income tax either! Just don't earn any money. Or be part of the underground economy, you know, sell drugs, or own a pawn shop or something.
The point is, Washington can gin up this idea into the same crooked mess that is the IRS. AND they'll KEEP the IRS to boot!
scott s. Wrote: Nov 02, 2012 4:09 PM
If you believe the "fair taxers", the cost of anything you buy today reflects a 22% "embedded" effect of income/payroll tax so if you buy anything you are paying the income tax (by their logic).
The Teleprompter Speaks Wrote: Nov 02, 2012 1:42 PM
If we were talking about a VAT instead of income taxes, it's still not worth looking at. A national sales tax would be better, but either would likely be tacked upon the income tax.
scott s. Wrote: Nov 02, 2012 4:07 PM
VAT is a national sales tax. The reason gov'ts go to VAT is for example the so-called Fair Tax rate is 30% which provides strong incentive for evasion. By collecting as a VAT the applied rate at any level of sale is only a portion of that 30% so much less incentive to evade.

I’m not a big fan of the International Monetary Fund, largely because the folks in charge oftentimes advocate toxic policies such as bailouts, higher taxes, and currency devaluation.

But there are some top-rate economists working at the IMF, and the bureaucracy has published some good studies about the economic benefits of reducing government spending and others warning that