If reducing VAT stimulates spending, the VAT take may actually rise- just as some people insist that dropping tax to a maximum of 20% across the board would stimulate more economic activity and increase the tax take. Ah, the old supply-side theory....
History shows that any "solution" involving carrots and sticks to raise revenue winds up backfiring. What needs to be done is to DRAMATICALLY DECREASE the size of the federal government.
