Comment: Re:so why not set up shop elsewhere? (Score 1) 292
>>>> Someone on $20k a year will be spending essentially all their income; someone on $200k a year is much less likely to be.
Provide rebates for people who make $whateverAmount. It also encourages tax filing, which is always good. In Canada, if you make less than a certain amount, the government will send you cheques quarterly for what your GST expenses would be.
VAT Taxes are a good, useful tax, but they should not be the only tax. Income taxes are better at targeting high value targets with more appropriate tax rates, but they're ass backwards in that they target the generation of income, which the government always wants to encourage.
What we most need across most of the west is a better way to prevent money from pooling the way it does into the pockets of certain individuals and corporations; or to pull it out of those pools when it does. Each dollar or euro or peso or whatever is a little bit like matter, they create wells which attract similar objects. When you have 0 dollars it's very difficult to get more, when you have $10,000,000, it's very easy to get more. Money forms pools, it's the government's job to break up these pools and keep the money flowing.
VAT taxes tax the flow of money, which is ok in small amounts, but shouldn't be used in large amounts.