Jerry Milo Johnson <[email protected]> wrote:
>
> IRS x 4 = New IRS
>

This is a fascinating topic so I did a little Wiki research to see how
the VAT is fairing.  For the US I thought this paragraph was
interesting:

"In October 2009, then-House Speaker Nancy Pelosi stated that a new,
national VAT was "on the table" to help the federal government garner
needed revenues.[14] After her speech, the Americans for Tax Reform
group urged the public to contact their members of Congress to oppose
this potential measure.[15] President Barack Obama was reported to be
open to a national VAT.[16] One day later, US Treasury Secretary Tim
Geithner stated that President Obama does not support a VAT for the
US.[17]"

http://en.wikipedia.org/wiki/Value_added_tax
http://www.businessweek.com/ap/financialnews/D9F7NI500.htm
http://thehill.com/blogs/blog-briefing-room/news/93721-geithner-obama-does-not-support-the-vat-for-the-us
Fascinating!

Also EU fraud is also interesting:

"Because exports are generally zero-rated (and VAT refunded or offset
against other taxes), this is often where VAT fraud occurs. In Europe,
the main source of problems is called carousel fraud. Large quantities
of valuable goods (often microchips or mobile phones) are transported
from one member state to another. During these transactions, some
companies owe VAT, others acquire a right to reclaim VAT. The first
companies, called 'missing traders' go bankrupt without paying. The
second group of companies can 'pump' money straight out of the
national treasuries.[citation needed] This kind of fraud originated in
the 1970s in the Benelux-countries. Today, the British treasury is a
large victim.[5] There are also similar fraud possibilities inside a
country. To avoid this, in some countries like Sweden, the major owner
of a limited company is personally responsible for taxes. This is
circumvented by having an unemployed person without assets as the
formal owner."
http://en.wikipedia.org/wiki/Value_added_tax

An unemployed person!!  Genius.

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