- The Value-Added Tax (VAT) enabled the rapid expansion of the European welfare state and government spending after its adoption in the late 1960s.
- VAT is a hidden tax that acts as a “money machine” for governments, leading to more spending and higher debt.
- Studies show that implementing a VAT in the U.S. would reduce GDP and weaken economic performance over time.
- European countries with VATs have much higher government revenue and spending compared to the U.S., where sales taxes are lower and less significant.
- The adoption of a VAT is closely linked to government growth, and the U.S. should avoid this path to maintain its fiscal advantage.
Source: danieljmitchell.wordpress.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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