Wednesday, May 27, 2009

VAT is it all about

While the substance of a VAT is appealing, lower cost of tax collection and record keeping as well as not punishing savers over spenders but as a cure for govt deficits and fiscal issues when combined with massive new govt programs it is a crock of fecal matter. Here at the Directive we don't know of any government with sales/VAT taxes that are in great fiscal shape. Europe - Nope, Japan - Seen the Debt to GDP there, other suggestions are encouraged. The key problem is the propensity to consume by politicians and the voters they suckle is greater than the system to provide such suckling.

Trial Balloon courtesy of the Washington Post.

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