Via National Review:
Want to know why so many European countries have managed to keep their marginal income tax rates lower than ours while still collecting far more revenue to fund far bigger government than we have? Because they levy value-added taxes (VATs), which are national sales taxes that don't show up on a retail bill but are instead hidden from consumers in intermediate stages.
Both Ted Cruz and Rand Paul have a VAT-like mechanism as part of their tax-reform plans. Both are misguided, to say the least. Even if they were able to get their plans enacted intact in the short run, in the long run what we'd end up with is a new, costly federal sales tax plus a continuing, problematic income tax. In other words, we'd end up like much of Europe...
No comments:
Post a Comment