[rmc]

> What would happen if you replace all (most) tax with VAT?

The poor would pay considerably more of their income as tax than the rich.

And yes, there are ways to do tax evasion with VAT. There was a court case in the UK about whether Jaffa Cakes were a cake or a biscuit (because there are different VAT categories)

[ahallock]

Then don't charge the poor for VAT.

[kuschku]

Now you create an incentive for everyone to stay just below the limit of what counts as "poor" and have their actual assets in other countries and get it as loan from themselves.

[rmc]

How do you do that? What's the limit? Is it all or nothing, or a sliding scale? How is each and every shop suppose to know and keep track of if someone is in this category or not?