"Jim," wrote in message
...
Calif Bill wrote:
"Jim," wrote in message
...

wrote:

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

**************

That's why sales taxes are usually considered regressive. The poor are
compelled to spend 100% of their income on basic needs. The wealthy
spend as little as only a few percent on basic needs and merchandise
subject to VAT or sales tax, with a higher percentage spent on services
and travel and a very high percentage on investment.

When you go to a poor person and say, "VAT is 20%, so give me 20% of
what your earn" that can hurt a lot worse, (even though it's a lot less
money), than approaching a wealthy person with "VAT is 20% and you
spend 25% of your earnings on taxable items so hand over 5%".

Flat tax, flat tax, flat tax, flat tax, flat tax. No tax on the first
$30,000 or so per family per year, then a fixed rate of 15-20% on all
earnings above that regardless of source. It's very fair, doesn't
burden the poor with any tax at all, and takes a fixed, predictable,
even percentage from everybody else without special favors or
exemptions.


This is why I asked you to read the article before commenting. The VAT
would be partially refunded based on income, and there would be an
income tax on those earning in excess of 100k/yr

Please read the article!


That's fair? And the politico's get more money, without the people
realizing how bad they is screwed. How much is the rebate? What if the
poor person is mostly buying food, which will be exempt, as political
suicide to tax basic groceries. Oh, now we have a national sales tax.
We
just raise it anytime more money is wanted. California had a 3% sales
tax
in my youth, about 40 years ago. Now it is 8.25% and they keep raising
it
for every special desire. Was in Italy in October. VAT was 20%.


Dunno that any tax is "fair"; but maybe at least we could understand it.
Why should it co$t me $80 just to have someone help me figure out how
much the government is going to take away from me?

Gotta be a better way than what we have now -- and I see this as a good
place to start discussing things.


Vat is not the way. And $80 is really cheap. There are lots of ways to
simplify the tax code. But with the government targeting different groups
for special treatment all the time, the tax code is horrific. A flat tax is
my preferred method, with a minimum income to have to pay taxes and only
medical and medical insurance costs as deductions. I give this as a
deduction, as if you are covered by a company heath paid insurance, there is
a tax write off for it, but those like me who have to pay our own insurance
want the same treatment.