Thursday, April 15, 2010

Will a VAT tax save the day?

AOL News:

[I]it is tempting to note that Greece collapsed in spite of having a 19 percent VAT since 2005. This is quite different from arguing that Greece wouldn't have failed if it didn't implement a VAT. There are many examples of countries that implemented a VAT and didn't collapse. However, it gives some evidence that the added revenue from the VAT wasn't used to reduce the country's debt and ultimately change its course.
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