Why is it not considered greedy to get other people to work
and take profit from their labor? Is that not a tax upon the
laborers?


Dave wrote:
Where do you get this stuff, anyway? Private parties do not have the legal
power to require payment of taxes.


Correct. But it is taxing nontheless (a bad pun).

[snip]


Seems to work for a number of Balkan and European countries,

Which have vastly different tax structures including a VAT tax.

Are you in favor of a federally imposed VAT tax?


Dave wrote:
Some do and some don't. Estonia, which in the most recent ratings is rated
as more free than the US in economic terms, has a flat rate income tax.


Possibly so. Rated by whom?

Anyway, I never claimed that the U.S. has the best or
free-est tax structure in the world. That would be too
Maxpropian.

And the flat income tax does favor the higher income
brackets... look at the most vocal proponents of it. I'm not
saying it's morally wrong, I'm saying it's unfair.

Furthermore, you must considered the desired economic result
of any imposed legal/economic structure before evaluating
the structure. Do want to encourage the growth of the middle
class? Greater good of the greater number? Or cater to the
wishes of a smaller number of richer people?

In general, most countries (now and thru-out history) are
run by the rich, for the rich. The U.S. has (at times) been
an exception, and in general unbridled plutocracy and class
privilege have not been publicly vaunted as "the American way."

VAT does have some advantages. In particular, if you want to encourage
savings and capital formation, tax consumption rather than earnings.

Sure. In fact, I'd be in favor of that; but the VAT does more.

VAT is exactly that tax structure that Maxprop was mockingly
referring to as ultra-liberal in a recent post: tax the
money every single time it changes hands. It deters
consumption but also production in any business that is not
vertically integrated.

By many serious economists, the VAT is considered a big
reason why the European economy has had troubles growing in
recent times of spurred global demand.


... Problem
in the US is that if it VAT were enacted, it would no doubt simply be
layered on top of the existing system

Why make that assumption? What if it weren't?

Imagine a discussion without straw men, Dave.

DSK