

How America might get a Value Added Tax - startuprules
http://blogs.reuters.com/james-pethokoukis/2010/04/05/how-america-might-get-a-vat-of-its-own/

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tptacek
The theory of this article is that we will:

(a) Shift from a complicated progressive tax to an _even more complicated_
regressive tax, and _simultaneously_

(b) Adopt a series of reforms that will end Medicare and Social Security.

Whether you agree with the principles or not, we're more likely to get a flat
income tax than a VAT.

~~~
hugh3
Nope, far more likely we'll get the VAT _and_ keep our existing tax system as
well. The article's flaw is in assuming that the tax needs to somehow be made
palatable to voters; it doesn't, all they need to do is continue to increase
spending until it becomes impossible to not raise taxes.

Reagan's "starve the beast" strategy was based on the assumption that if you
continue to cut taxes, eventually congress will be forced to cut spending, but
it didn't work. Obama's "gorge the beast" strategy is based on the assumption
that if you keep increasing spending then eventually congress will have to
raise taxes. It looks like it might work a lot better.

~~~
fexl
This concept of gorging the beast reminds me of something I read in a book
called "Being Sovereign":

"Individuals tolerate limitations and control, obey mindless bureaucratic
nonsense, make a sincere effort to "follow the rules," until they don't. While
their own best interests seem to be served by obedience, people try very hard
to obey even the most idiotic of directives. When it becomes clear that they
cannot prosper, or may not even survive, following the rules, they revolt. It
should come as no surprise that people have limits, and there is always a
straw that breaks the camel's back, but the perception of people accepting
more and more nonsense as they try to "go along to get along" misdirects those
in power to believe they can continue to be arbitrary and capricious far past
the breaking point."

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Diogenes
It's not going to happen, as the Constitution reserves these powers to the
States. The States retain (so far) plenary power with regards to transactions
within their borders.

A very detailed refutation:
[http://www.heritage.org/Research/Reports/2005/05/Beware-
the-...](http://www.heritage.org/Research/Reports/2005/05/Beware-the-Value-
Added-Tax)

