Value Added Tax
Many countries around the world levy a Value Added Tax (VAT). Conservatives resist the idea of adding a VAT to our tax burden would balloon government spending and the size of government. (I don’t like the VAT either, but I see no other viable solution to the gigantic national debt that we must find a solution for.) One could look with alarm at the tax burdens of other countries and believe that the VAT is to blame. Source: Revenue Statistics 2018 Tax revenue trends in the OECD , 2018 This graph shows total taxes of all kinds, as a percentage of the countries’ Gross Domestic Product. By comparison, the United States (5 th from the right) at 27.1% looks pretty low. But the graph applies the “bikini principle”: it reveals that which is interesting, but hides what is vital. Different countries do similar things in different ways. Most of the countries with apparently high tax burdens include health care costs in their government spending paid by taxes. In the United States, a lar...