On Thu, 24 Mar 2005 21:04:37 GMT, "Jim," wrote:

http://money.cnn.com/2005/03/22/news...ex.htm?cnn=yes

Very short extract -- read the article please before commenting

With reform recommendations from a presidential panel due by July 31,
the betting is that at least one of the proposals would move the United
States closer to a model that started in France decades ago, spread
across Europe and is now used by more than 120 countries, including
Singapore, Canada, Japan and Australia.

The model? A hybrid tax code with two key components: a tax on income
and a type of sales tax commonly known as a value-added tax.

"My guess is the panel is playing with a couple of different ideas,"
said Clint Stretch, the director of tax policy at Deloitte Tax, a unit
of the accounting giant Deloitte & Touche. "One is some...reform of the
current income tax system and the second is a value-added tax."



It just might work -- my only fear is that the congress never wants to
give up a tax.

The value added tax will greatly increase the cost of goods, thus affecting the
poor much more than the wealthy.

In Germany, in late 80's, the value added tax (Mehrwehrsteuer)was 14%. I believe
it's up to 16% now.
--
John H

"All decisions are the result of binary thinking."