“Berkshire Hathaway Chief Executive Warren Buffett, Vice Chairman Charlie Munger and board member and Microsoft Chairman Bill Gates said that for the U.S. to continue to compete on the world stage, revenue must increase – and the VAT is the best option to ensure that.
‘In the end we are not taxing enough, unfortunately, or we’re spending too much, probably some of each,’ Buffett told FOX Business’ Liz Claman. ‘We’ve got a gap of 10 percentage points between what we’re raising in taxes and what we’re spending. One way or another we are going to have to close that gap in a major way, so if some of those taxes fall on me, or some fall on Berkshire, that’s probably the way it should be.”
The VAT is an efficient system, Munger said, causing as many fears about how the additional revenue will be spent as it does about the additional tax burden. ’The people that are against it are against it because they think it will work too well, that the politicians will get too much money and do too many dumb things with it, and there is a good deal to be said for that point of view,’ he said.”