I agree that a VAT tax is largely a "stealth tax". But administration of such a tax is really much simpler than you make it sound.

All the businesses need to do to comply is: (1) collect the tax from their customers; (2) Keep accurate records of how much tax they pay to their suppliers; (3) file a return that compares the two amounts and remit the difference to your freindly IRS/VAT collection agency.

there are much more complicated tax scheemes out there: For example, a VAT tax would be nowhere near as complicated as Al Gore's abortion of an idea (formerly known as a BTU tax).

I agree with you in the end, that a sales tax would be the ideal way to go: Its simple and understandible in a way that even a 4 year old would understand. It would be point of sale so that collection would be easy as would be the accounting. It would hit everyone (rich/poor, back/white, male/female, Jew/gentile, etc...). It would be almost impossible to avoid (note: barter transaction would really be no bigger a problem than the current income tax system which strongly encourages barter). It encourages savings (and savings = investment). IT WOULD TAX NON-CITIZANS who come to the US and spend money. Businesses and not individuals would be given the reporting burden (which they are better equiped to handle). The IRS would nearly eliminate individual taxpayer audits. Fewer overpriced accountants would be needed (hey I would be happier in a different line of work anyway). And the list goes on and on...

Scott Evil