How Does NESARA Compare to Other Proposals?
The Value Added Tax
 

The value added tax is similar to a sales tax in implementation, but similar to the income tax in that the cost is passed down the line to the final consumer. The tax is therefore regressive. Instead of implementing one tax of a certain percentage at the time of retail sale, there is a smaller tax, proposed at 5%, added each time the product is resold or when value has been added. For example, a tax is added when a product is passed from manufacturer to manufacturer, or from manufacturer to wholesaler, or again from the wholesaler to the seller. Most products would be priced higher than they are today because the cost of goods would include this built in tax. However, the effect would be the same as the current income tax as consumers could not avoid the accumulative costs passed down by business.

In summary:

• A 5% tax is levied at each stage of production of goods.
• The total tax is built into the cost of goods.
• Exports are not taxed.
• All imports are taxed.
• Allows multiple rates and exemptions on goods from other countries.
• No tax forms or tax returns will be needed for individuals.
• Would eliminate the IRS.
• The cost of compliance is estimated at nearly $5 billion per year, about a hundred times less than the current system.

Disadvantages:

• Would be more complicated to administer and collect than a sales tax.
• Would tax food and medicine as does other national sales tax proposals, thus taxing the necessities of life.

The Value Added Tax is regressive in nature and provides no provisions to resolve the root problem, an unsound money system.  Tax reform is a good start, but ultimately futile without monetary reform. NESARA solves both problems.