November 30, 2019 by Dan Mitchell
I wrote yesterday about Japan’s experience with the value-added tax, mostly to criticize the International Monetary Fund.
The statist bureaucrats at the IMF are urging a big increase in Japan’s VAT even though the last increase was only imposed two months ago (in a perverse way, I admire their ability to stay on message).
Today, I want to focus on a broader lesson regarding the political economy of the value-added tax. Because what’s happened in Japan is further confirmation that a VAT would be a terrible idea for the United States.
Simply stated, the levy would be a recipe for bigger government and more red ink.
Let’s look at three charts. First, here’s a look at how politicians in Japan have been pushing the VAT burden ever higher..........To Read more....