Also, it wouldn't be 20%. 20% is if you replaced the ENTIRE tax code.
Including income tax and such.
To replace the coporate tax code, you'd probably need like 5%.
See here
"I have been recommending for the past year abolishing the corporate income tax to be replaced by a 5 percent VAT -- 2 percent to replace the corporate income tax; 1 percent to pay for health care reform; and 2 percent to pay down deficits. Having served in the U. S. Senate 38 years and on its Budget Committee over 30 years, I know this is realistic and doable by Congress."
http://www.postandcourier.com/news/2010/apr/29/use-vat-to-replace-corporate-income-tax/
(He's an ex democrat senator by the way.)
Heck, it'd only be a 2% tax increase if we leave the healthcare reform and deficists as they are and just want to replace it.
Not counting the savings from not having a corporate tax or needing corporate tax lawyers.
Another aricle by the same guy says
The 2010 estimate for corporate income tax is $156.7 billion, whereas a 5% value added tax raises $600 billion. Food, health, heating and cooling, and rent can be exempted for the lower income which still leaves over $300 billion to pay down the debt. Corporate income tax begins today at 35% with an average payment of 27%. Reducing the tax burden on production of 27% to 5% lessens the cost of articles for domestic consumption and, with no tax on exports, makes it profitable to produce in the United States.
http://www.huffingtonpost.com/sen-ernest-frederick-hollings/what-went-wrong_b_781138.html
