In response to:

The Great TCI Anti-VAT Mutiny of 2013

HongKongCharlie4 Wrote: Feb 14, 2013 8:10 AM
The VAT is a hidden tax on the same product in every step of production. Politicians love it!! A nation sales tax on the other hand is an in-your-face tax! This makes the politicians very nervous about trying to raise it. It would result in a massive turnover in congress. Just what we need. HKC

The value-added tax is a pernicious levy.

It’s basically a hidden form of national sales tax, imposed every time a transaction occurs at any stage of the production process.

But what irks me about the VAT is not its design (indeed, it shares some key characteristics with the flat tax). What gets me agitated about the VAT is the fact that politicians always seem to treat the tax as a way of financing a larger burden of government spending.

That’s certainly what we’ve seen in Europe, both when the VAT was first implemented beginning about 45 years ago...