Value-Added Tax Is Better Than a Consumption Tax

August 13, 1992

Regarding the Economy page article "Don't Tax Income, Tax Consumption," July 31: The author's consumption tax (top down) does not create a win-win deal. In fact it creates many of the same nightmares the average American now deals with regarding the filing of taxes each year.

On the other hand the value-added tax (bottom up) makes life simpler for the tax payer and the government alike. The government would only have to audit businesses to be sure that the correct amount of value-added taxes were forwarded on schedule. Tax payers would only pay a built in value-added tax on everything purchased including food and never have to file another year-end tax form.

So if the politicians want to keep their jobs it would seem prudent to serve the "special interests" of the United States citizens rather than of special-interest groups. Because the alternative is in no one's interest. Guy Powers, New York

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