It is a variation of a sales tax, although its cost does not appear on receipts. A VAT has all the problems of a national sales tax, plus more. Since consumers do not know the true cost of the tax, it is easy for legislators to raise the VAT rate to fund increases in government spending. This already has happened in many countries that have VATs. In fact, Denmark alone has increased its VAT rate by 150 percent over 25 years.
Conclusion Go with the best.
Now, fair means forcing those with lots of money to pay more than others. The flat tax focuses on the idea of fairness and returns to the idea of equal treatment by charging everyone the same income tax rate. The flat tax closes the loopholes through which people legally avoid taxes, eliminates disincentives to investment, and introduces fairness to a system in dire need of reform. Rebecca S. Schaefer is a policy analyst at Citizens for a Sound Economy Foundation.