Black Mamba
Member
Sorry, my mistake, I should've said "can only be justified using weird nebulous terms like "market distortions" and appealing to authority of foreign legislatures".
Can you defend VAT on its merits?
What you want to do is tax wealth right?
Marginal utility and all that shit, the problem is that taxing wealth is hard, but you try to get as close to it while being practical, and personally I think an income tax and an inheritance is all we really need (not 100% on property tax, it feel like a perfect system wouldn't need it but a realistic one would, but that's more of a hunch than rigorous analysis).
Yeah, you can through complicated rates and legislation kinda, sorta, get with that on VAT, but why fucking bother?
Even greatly designed VAT has a huge problem of avoidance, which mean that you reward the cheaters.
Really, is there one good reason outside political viability?
And if that the only reason, you need to ask yourself why that tax is viable, that should hint you about what type of tax we'll get if we go down that route.
A VAT is a sales tax that makes tax avoidance much harder compared to a standard sales tax (and changes how exports/imports are taxed).