September 20, 2005
The Economic Truth Behind a Flat Tax System
When the Flat Tax'ers push their reform because "other Countries in Europe and elsewhere are using a flat tax and doing well", remind them that most of those other countries also have a very high VAT tax working along side the Flat income Tax. This is a fact they almost always forget to mention in the Flat Tax debate. After their jaw drops, send them to the link above to see the exact costs of taxes in these countries. It's amazing to realize how much in the way of taxes paid by consumers around the world are hidden from them in the price of goods and services. Hardly a Country in the entire world lets their citizens really see what their government cost them. It's easy to see why the major world politicos would be against the FairTax passing in the U.S.A. It would be a trend toward honesty in government that could start a worldwide riot!
Ex from web chart: The U.K. has a 30% Corporate flat income tax (hidden in prices), a 0-40% personal income tax to everyone, AND a VAT tax of 17.5%, Do we really want a tax system like this?
Ex from web chart: Russia often used as the example for the Flat Tax by Steve Forbes, has a 24% Flat Income tax on corporations (hidden in price of everything), a 13% flat income tax on individuals AND an 18% VAT tax . As I see it, this equals 55% taxes on every citizen there. Boy and this is the best example the Club for Growth and Steve Moore can use?
Notice that the USA is one of the few countries that currently doesn't have an "official" VAT tax, although one could call our current corporate taxes a form of VAT. We at least don't have 2 forms of VAT operating at the same time.
Check out Germany and Indonesia for some real eye openers on their high taxes.
Then check Japan our biggest rival for world domination of the economic world who like us, doesn't have a VAT officially.
No wonder there are so many imports into this country by these countries.
Due to the high taxes, most of their own citizens probably can't afford to buy anything!
And to think this is what Steve Forbes, Dick Armey, Gingrich, S. Moore, Bartlett, Feinstein, N. Pelosi, Elizabeth Dole, and many others including many in Congress, want for Americans.
_PA State Director - AFFT (volunteer from McMurray PA)
_marlene [at] pafairtax [dot] org / fairtaxsupportpa [at] aol [dot] com