Bruce Bartlett: How to really simplify the tax code

[Wild Cobra]

http://www.bloomberg.com/news/2013-1...n-embrace.html

I'm OK, and prefer a consumption tax over our current income tax system, but I say " no" to a VAT.

[Winehole23]

why?

[Wild Cobra]

why?

You mean my " no" to a VAT?

Do you know the difference between a consumption tax and VAT?

I am against taxing productivity. A VAT taxes productivity. A consumption tax does not.

Now to be fair, there is some confusion and various interpretations between the two. The distinction I make is that the consumption tax is effectively a sales tax at retail level only, whereas a VAT taxes increased value at each step of the manufacturing process.

[Winehole23]

The distinction I make is that the consumption tax is effectively a sales tax at retail level only, whereas a VAT taxes increased value at each step of the manufacturing process.

that's superficially plausible. can you give an example of what you mean?

[Winehole23]

and also, why that's preferable.

[Winehole23]

your objection is clear. the reason for it isn't.