[lbo-talk] VAT (was Debunking the Dumping-the-Dollar Conspiracy)

[Jordan Hayes]

Shane Mage says that VAT is the most progressive because you can 
[p]rebate to the poor based on back-figuring how much you actually need 
to run the country.  That sounds great, but you could do that *today*[1] 
with the crazy mish-mash of taxes we have in the US.  Just add a line to 
the 1040 that says "look up your credit based on line 27 (taxable 
income)" and subtract it from taxes owed.

What's the big revelation?

VAT is still regressive, because just like "rebates" that have to be 
filled out and sent in later, many who pay VAT will never see the 
rebate.

I think the frame of "raise taxes" should be replaced with "raise *tax 
revenues*, hopefully by removing decades of accretion of deductions" ...

Most people are "against" new, higher taxes; most people could get 
behind the removal of things that they see as having been abused.

/jordan

[1] All that's required, like what it takes to go to war or to stay at 
war, is political will; if your idea isn't getting accomplished, it's 
because they don't like it, not because they aren't aware of it ...