Hacker News new | ask | show | jobs
by rayiner 2420 days ago
A VAT is different than a sales tax. And families at the margins would be better off with the increased social services we could provide with a European-style VAT, than the pennies we could collect by fighting to tax corporations more than they do in Europe.

It’s a middle class cop-out. The American middle class says they want to help those at the margins, but they don’t want to pay 25% VAT on MacBook Pros. They’re only in favor of increased welfare if Jeff Bezos is the one who pays for it.

2 comments

There are more solutions than a high VAT, and since it is a regressive tax, it is actually a bad solution. The fact that some countries with high VAT use the funds better than other countries use their tax income does not make it a good tax. Of course corporate income tax can never solve all tax shortfalls, but it is still a reasonable piece of the puzzle.
Indeed. The US could very well fund a generous welfare state like Europe, but that won’t be done by increasing taxes on the rich, but rather on the middle class (like in Europe).