OOPS, error in my math. The modified tax where the employee tax and payroll tax were added to the subtraction VAT would be 23.8% (10% individual, 5.3% payroll (non-elederly retirement/survivors), and his 8.5% VAT). While this would be the simplest, again, it would not include the ability to provide subsidies for larger families, leaving such families at an economic disadvantage - or worse leaving their employers at such a disadvantage because they could not pay a living wage to them even if they were inclined to do so. Indeed, the incentive would be stronger to fire workers with families and seniority and hire kids out school for whom the smaller wage goes farther. This already happens in the software industry and it is a nasty practice that could be discouraged by a larger child credit.