| Kasz216 said: 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%. |
In Germany, VAT is 19% so actually very close to the 20% mentioned here. And VAT is just one of many, many taxes we have over here (we have about 60 different taxes). But of course that doesn't say anything about how high VAT would have to be in the USA, just wanted to mention it because the 20% are so close to what we have.
VAT isn't very popular over here, but I think that's mainly because most people are shortsighted. Every tax is unpopular, but VAT is a very apparent/obvious tax: Raise it, and everything will instantly get more expensive, everyone will feel the effects and people will cry. That's why polititians are afraid of raising the VAT - raising taxes that only affect part of the population is more unfair, but it will annoy less people.
But personally I think VAT is a good thing. I think it's a very fair tax and I would prefer massively raising the VAT in order to reduce or even better eliminate most of the other, more hidden taxes.
