Wrong Time for a National Sales Tax

From an economic point of view, the progressive income tax is grounded in the theory that each additional dollar that an individual earns has less utility to that individual. A consumer at the bottom of the income scale will spend all or most of his or her income on essentials for the family in comparison to an individual at the top of the income scale, who will be more likely to save a portion of this income.

This simple truth about consumer behavior argues strongly against flat or regressive forms of taxation such as the value-added tax (VAT) ["Once Considered Unthinkable, U.S. Sales Tax Gets Fresh Look," Economy & Business, May 27]. Some of us can recall the 10 percent luxury tax imposed on the sale of private yachts and airplanes during the first Bush administration. In less than a year, the boatbuilding industry was decimated, its workers unemployed.

Unlike the income tax, which is largely unavoidable by legal means, a sales tax or VAT is easily avoided by simply not purchasing as many consumer goods. That is exactly the behavior that we wish to discourage, both now and after the recovery is well underway.

BILL FROGALE

Falls Church