"Dave" wrote
DSK said:

For one thing, a sales tax (unless
rebated... and the rebate is administered efficiently enough to at least
recoup the administrative cost... not the way the gov't usually works)
is regressive. It depresses consumption at all levels, and is most
noticable across the bottom of the pyramid, where the greatest number of
transactions take place.

That in itself doesn't get you very far in determining which tax yields
the
more efficient allocation of resources, since reducing consumption should
also increase saving and investment.

So, if one's goal is to increase consumption, and thus sales and profits,
one avoids a sales or VAT in favor of other taxes. OTOH, if one wants to
reduce consumption to increase the $$$ available for investment use a sales
or VAT. But if you are an idiot you do neither, you just borrow and spend
whatever you want.