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I'd have to see some statistics that are not from the CATO institute in order for me to get behind a VAT. By extension, I find it curious that flat tax proponents are also enthusiastic about defense spending, which takes up almost 44% of discretionary spending by the Federal Government. Are they willing to absorb cuts in their beloved military?
I'd have to say that the problem with our tax code is not that it's progressive, but that wage earners, usually the middle class are hampered by the payroll tax. Income tax is, IMO, the fairest way to distribute the costs of society, since the wealthy tend to have multiple sources of income while wage earners derive most of their income from their labor.
The answer to combat cheating on taxes is not to ignore the problem, but by giving the IRS, one of the most competent bureaus in DC more resources to prosecute tax evasion. Corporations, which benefit most from government's enforcement of property rights, should not be allowed to hide their earnings in tax havens, and claim that it's done because of global competition...
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