Wednesday, August 24, 2011
The VAT-in our future?
The oft mentioned Value Added Tax is the topic of this article today from the WSJ. While the VAT bears similarity to a national sales tax, the latter is a tax on consumption and the former a tax on output. In essence this taxes the producers . The history of the VAT suggests that it starts out as a very small % and increases over time. In most locales it replaces the income tax but we may see a VAT on top of ,not instead of, income tax. As the author indicates, likely a way to fuel ever larger government.