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...