Thursday, October 15, 2009

A VAT is a VAT and Makes Government Fat

One of the proposals being thrown around by politicos is the idea of a VAT (Value-Added Tax). The CATO institute has a great video about what a VAT is, etc.

By the way, while watching this, keep in mind GDP means "Gross Domestic Product" or how much economic activity goes on in the US. Once we use that as a measuring stick, we can talk about percent of GDP as a measure of government's impact on the economy generally, regardless of the highs and lows of economic cycles.

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