It’s so lucrative that it generates extra revenue!
William Gale 20, president of National Tax Association, former Associate Professor of Economics at the University of California, Los Angeles, Ph.D., 10/2/2020, “A Progressive Consumption Tax: Pairing a VAT with a UBI,” https://www.taxpolicycenter.org/sites/default/files/publication/162509/a-progressive-consumption-tax.pdf
A VAT initiated in 2020 at a 10 percent rate would raise $247 billion, or 1.1 percent of GDP, even after funding a UBI that provides families payments equal to the VAT rate times twice the poverty line (Table 3). Over the course of 2020– 29, the policy would raise $2.9 trillion. If a UBI were not implemented, the VAT would raise revenue by a whopping $842 billion in 2020, or about 3.8 percent of GDP.6 The 10-year revenue total from the stand-alone VAT is about $10 trillion. The net revenue generated by a stand-alone VAT would provide an enormous pool of resources to address social and economic problems.