for easy maths) - the amount of VAT levied would be $1.50 and $10 - making the sale price $16.50 and $110. There is sometimes the very dubious argument made by the supporters of VAT that it is progressive in that only wealthier folk can afford to buy the cast iron pan. Where I do agree with you is in the fact that governments like taxes such as VAT, duty on petrol and the like (at least the UK governments have liked them). means they can make great political points about not raising the levels of income tax. Thanks. I know you have repeated yourself that a VAT is not hidden. It is good to know your definition. Hidden tax does not have to be 100% secretive, though that definition does not go against its definition. It is just a narrower definition than it is. As long as a tax is not highly visible, then it is a hidden tax. For example, corporate income tax, tarriffs (import tax), sin taxes (e.g. tax on tobacco), inflation tax, .... these are all classified as hidden taxes. It isn't like we don't know there is a coporate tax, or that we don't know there is a tax on tobacco. We are fully aware of it, more so that any future VAT on America will be, but these are considered as hidden taxes. Professor Allan Meltzer wrote: "European experience suggests that the VAT is a largely *hidden tax* that can increase with less political