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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.

And to counter, they offer a low income reimbursement of VAT on
life's essentials, so that lower incomes get a cheque, four times a
year, which they immediately spend. They should also rebate mother's
a tax on diapers, etc. Tax books? Tax education tuition? Tax
education loans? Why not?

So, to spur the economy, raise the tax and the rebate, watch the
money ripple through the vegetable market, the clothing market, the
dentist's market, etc.

Reins on a runaway horse which comes after the cart, or maybe rides
in the cart, galloping on a treadmill?

Estate tax is next!

Terry k

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