A Controversial New Policy Tool

This article talks about the Value-added taxes that are being used in most developed countries that the states might have to start using as-well. A value added tax is a tax that is collected throughout the entire process of production until the sale of the final good. There are some advantages to this policy tool but there is a big problem with it and it is that it is regressive. Poor people will proportionally pay a higher percentage or their salary as taxes while buying the finalized goods. There will be much disapproval by the working class and by a large proportion of the liberal government representatives. It will be interesting to see if this policy tool will begin to be used in the United States in order to try to move the deficit closer to balance.