Subject: Re: o/t, debtors and creditors,
The benefit (to the government) is that the VAT is invisible to the end purchaser, so they don't really realize that they are paying a HUGE tax.


In Canada the VAT (called GST) is added on after the purchase price - not hidden.

The biggest benefit of a VAT at the federal level would be to broaden the tax base. There are a LOT of residents who don't pay any federal income taxes. A simple 5% tax would generate huge amounts of revenue which could be used to simplify income taxes and even reduce budget deficits if so desired (unlikely). Combined with an Asset tax and you get a much more fair tax system IMO.


tecmo
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