[hanniabu]

Can you expand on why you think it's regressive?

> That should be maxed out long before we look at a VAT.

This is relative. The US government sucks at being efficient.

[scooble]

Not the person you asked, but as I understand it, poor people spend a higher percentage of their income on goods and services (because they have less left over after paying for basic necessities). So a higher percentage of their income is lost on VAT than a richer person. This makes it a much less progressive taxation method than e.g. Income tax.