In response to:

The Value Added Tax Would Raise Tons of Money; and that's Why it's Wrong

LA-Steve Wrote: May 05, 2012 2:10 PM
Economic education in this country is abysmal. Most of the economists who have endorsed the fair tax are University professor types. I have read the "Fair Tax: The truth: Answering the critics" book and I found it lacking. For one it would escalate housing prices due to differences between how companies and individuals are treated. It would lead to increased black market activity because the rate is high enough to make it profitable--google cigarette smuggling. 1 While people cheat on all taxes, the sales tax is one of the oldest taxes and its a bad tax due to enforcement costs 2 you are wrong voluntary property taxes stimulate the economy.

I’ve written before how “The Value-Added Tax Would Be a Money Machine for Big Government.”

Writing for Bloomberg, Josh Barro has a piece entitled, “Value-Added Tax Would Raise Tons for U.S. Coffers.”

So you might think we see eye to eye on this issue, but that would be a rash assumption. While I see a giant new tax as a dangerous step on the road to serfdom, Josh thinks it’s a necessary and desirable reform.

…it is time to reconsider a VAT. It would be both substantively better and more politically palatable. Here’s why: A value-added tax raises a...

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