03 July 2007

The Gospel according to Phyllis

Over at Townhall the ever entertaining Ms. Schafly has discovered what has caused the enormous American trade deficit. "What is it?" you ask.

"Value Added Tax" trumpets Ms. Schafly. "Because its a tax. And I don't understand it. Did I say it was a tax? Americans don't tax this way so it is just plain wrong. And it's unfair. I think."

I think that is an accurate précis of what she said. It is clear that she does not understand the premise or mechanism of VAT. I used to have to be the one to explain it to my American colleagues and they never really got it. Ms. Schafly can just join the crowd. Economics and accounting isn't really her cup of tea, now is it?

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