Some Presidential candidates over here are promoting a 'Fair Tax' (amounting to a national VAT) to replace the current Federal Income Tax system now in place. The advocates say/claim the plan would continue the existing level of federal funding from income taxes while eliminating the Internal Revenue Service and would replace income taxes, Social Security taxes, corporate taxes, and a few other current means of revenue by placing a flat tax on all consumer goods nationwide. What they don't explain is how this would replace the state level income taxes as well as property taxes on assessed real property such as cars, boats, houses, etc. While a 'Fair Tax' sounds good on the surface, I doubt it would ever be enacted, and if it were to be enacted, whether it would work well enough to provide the revenue to the government which is now realized by the current (albeit screwed up and complicated) tax codes. I also think it would encourage black and gray market economies to spring up.
I don't envy you all in the UK and other places where not only is an inflated VAT imposed, but you ALSO have huge income and property taxes assessed. I suppose that your government(s) NEED the extra revenue to fund all the surveillance cameras Big Brother seems to be so fond of 'over there.'
