Wrong again. Their income tax works very much like ours does. If you get paid on payroll, they tax that for income tax revenue. They just also have a VAT system, not the fair tax and nothing like it. Again, their system is nothing like what ours would be like under the Fair Tax system and therefore they provide no model similiar enough to learn whether or not it would be successful.

Quote Originally Posted by FairTax.org
What about value-added taxes (VATs), like they have in Europe and Canada? Are they not consumption taxes?

While VATs are also consumption taxes, and better than income taxes, the FairTax is not a VAT. A VAT works very differently. It taxes every stage of production. It is much more complex and is typically hidden from the retail consumer. Second, in industrialized countries that have a VAT, it coexists with high-rate income tax, payroll, and many other taxes that, in some instances, have led to marginal tax rates as high as 70 percent. Third, all other industrialized countries, except Australia and Japan, have a much larger tax burden than the U.S., which requires higher rates and makes tax administration much more difficult. Lastly, a VAT is a lobbyist’s dream, allowing them to install their loopholes unbeknownst to the purchaser. A retail sales tax, in contrast, is a lobbyist’s nightmare, applied as it is under the bright lights of the retail counter.
Try again =-)