VAT

For all you “Fair Tax” folks who think you can eliminate the IRS and Income Tax and replace both with a National Sales Tax, here’s what the dems are already proposing.

Never forget, if you ever realized it, a consumption tax kills business and leads to illegal avenues to by-pass the tax. We’ve had a tax on liquor almost since the beginning of the republic (look up the Whiskey Rebellion) and there are still people making moonshine. Any form of consumption tax is filled with unintended consequences. Foremost is that you’ll end up with a larger IRS, the VAT tax and an Income Tax.

If you want to replace the Income Tax, your first goal is to repeal the 16th Amendment. A flat tax as proposed by Malcolm Forbes, achieves many of your goals without the unintended consequences.

Just so you don’t forget, here is Michael Ramirez’s opinion of the VAT tax.

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