Re: Simpler Solution
Because generating revenue is only one purpose of the tax system. The other is social manipulation. For instance, you can deduct the interest on your house mortgage, thus encouraging home ownership. Also VAT taxes only tax the money that you spend. Income taxes get a piece of any money you receive. So, if you win the lottery, the government gets about 1/2 of it even if you never spend a dime of your winnings.
Biting the hand that feeds IT
