No. of Recommendations: 6
At a guess, 6% VAT would probably be enough to wipe out the problems of the federal deficit.
You can't be that naive. Not if you have spent any time as a US resident or citizen.
Within 2 to 4 years the federal government would increase spending by more than the amount of VAT collected.
We have plenty of historical evidence of what would happen.
Federal income tax was initially 1% with a top rate of 3%.
The Social Security tax was initially 1%.
Several states have raised their income tax this way:
* A temporary surcharge to pay for flood/tornado/fire damage. "This is not a tax increase, because it is only temporary."
* A few years pass.
* The surcharge is folded into the income tax. "This is not a tax increase, because you are already paying it."
