I think this is a big mistake to implement VAT in the US. Americans have no understanding how much it will cost to them, especially loosing of their freedom.
VAT was invented and was cheered by politicians and bureaucracy everywhere for two reasons:
- it is much easier to administer the VAT because taxpayers are obliged to assist an inspector - without this they can't have back their money.
- due to its character technically it is much easier and less costly to administer VAT by the central fiscal authority. Then it promises to redistribute these amounts to the local authorities justly, according to the federal/central government law!
Of course VAT has a very high danger of centralization of power. I assume this is the main reason why it was invented in France but not in Germany or any other federation or decentralized state. This is why the US is not a good place to implement VAT.
It is also wrong philosophically obliging a taxpayer to help government to administer/collect taxes. VAT cannot survive without this very system that a taxpayer must prove that the fiscal documents he/she is holding in hands are legal even if they are issued by suppliers.
And, you must help tax authorities to tax others – like you're obliging others to pay taxes. Unbelievable! Is not it against American Constitution rules?
The US is still believed as a main defender of liberty. Increase of the government expenditures of last years already confused many people in the world and encouraged many governments to follow. Now the US is the only country without VAT only hope for everybody that once upon a time their governments would eliminate VAT following the US example. Now, if VAT is implemented in the US - the world will lose all the chances for limited government and economic freedom.
