With SS the wage earner is only paying the 7.65, with VAT he pays 16% plus 10% on income. It will draw all from the lower 3/4 and near zero from the upper 1/4..Those folks don’t pay income tax and they don’t consume anything near to their income. Add taxes to welfare, we will just end up having to add more to the welfare checks:(
This tax is sneaky and dangerous. This type of tax has destroyed other countries, WHY would we bring it upon ourselves?
The VAT is different from state sales taxes because it is included in the price of the good rather than added at the cash register. That’s one reason why some conservatives object to it—Rubio cited Ronald Reagan. And why Cruz may be so defensive.
Pretty clear article.