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Flat Tax or Fair Tax?

Jeff_Georgia Wrote: Jan 31, 2013 2:39 PM
I'm appalled that Daniel Mitchell doesn't seem to know the difference between a consumption tax and a VAT. A consumption tax is applied at the sale of the product to the consumer. No place else. A VAT tax is applied EVERY TIME value is added. Example: iron ore is mined and sold - tax. The iron ore is turned to steel and sold - tax. The steel is forged into a part and sold - tax. The part is combined with other parts to make an assemble and sold - tax. The assembly is combine with other assemblies (say into a car) and sold - tax. See the BIG difference? Come on Mr. Mitchell, you do your readers a disservice...
Ned6 Wrote: Jan 31, 2013 4:38 PM
Under a VAT system, the is no "cascading" of taxes. When a producer buys a component product he receives proof that taxes have been paid on the component part and he can deduct that amount of tax from the tax he pays at his "final" sale.
D272 Wrote: Jan 31, 2013 5:13 PM
You wish. Did you forget that Democrats write these laws before reading them?
SteveandJag Wrote: Jan 31, 2013 9:22 PM
Ned, the VAT favors vertically integrated, TBTF. The VAT is applied at every level and while it attempts to level the field, collecting and reporting it ONCE, is MUCH, MUCH, MUCH less expensive.

I’m at Hillsdale College in Michigan for a conference on taxation. The event is called “The Federal Income Tax: A Centenary Consideration,” though I would have called it something like “100 Years of Misery from the IRS.”

I’m glad to be here, both because Hillsdale proudly refuses to take government money (which would mean being ensnared by government rules) and also because I’ve heard superb speeches by scholars such as Amity Shlaes (author of The Forgotten Man, as well as a

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