What will a VAT do? It will squeeze all those who are not in the upper 1%. In a post-Katrina world, the VAT will give the government greater income at “point of sale” which means that it will not be collected just on April 15 but every time a purchase is made: clothing, a house, or an automobile, having the plumber over to fix the toilet, or having your teeth cleaned. It will reward the rich and punish those who don’t have any savings.It will change the America we once knew.

It doesn't seem to worry us British (or any other people of the EU, come to that). It is not imposed on food or housing, nor on medical supplies and services e.g dentistry, nor on clothing for children, nor on various other services and goods.It is not chargeable at all by small businesses, ones with a small turnover. Its existence is factored in, to the extent necessary, in calculating the amounts proper to pay in benefits. So how does it affect the poorest ? As to the richest 1%, well, most taxes don't affect them a great deal. If they don't have a tax avoidance scheme they still hardly suffer at 40% tax on the topmost 'slice' of their income in the UK. (Tax avoidance? Philip Green, the owner of some department stores in Britain, just paid himself a dividend of £1,2 billion (nearly two and a half billion $US ) for two years. He'll pay no UK tax on it. He lives in Monaco )