Final answer:
Calculating the equivalent VAT rate to an income tax rate of 18.2% requires analysis of detailed economic data and fiscal models. Since VAT applies to expenditure and income tax to income, there isn't a direct conversion rate between the two. The analysis would need to consider the tax base, consumption patterns, and potential economic impacts.
Step-by-step explanation:
To determine the value-added tax (VAT) rate that would need to be applied to produce the same revenue as an income tax rate of 18.2%, an intricate economic assessment is required. This assessment would need to take into account the overall tax base, the structure of consumption and savings, the elasticity of consumption, and the potential tax incidence on consumers and businesses. The income tax system in the United States is progressive, meaning that as income rises, so does the percentage of income paid in taxes. To precisely estimate a VAT rate that would yield equivalent revenues, one would need to analyze comprehensive fiscal data and apply appropriate tax policy modeling.
Simply put, there isn't a straightforward conversion rate between income tax rates and VAT rates because they apply to different bases (income versus expenditure) and can have different effects on the economy. Typically, VAT rates are lower than income tax rates as they are a consumption tax applied on a wider base with every transaction involving goods and services. As of the information available here, making a precise calculation is not possible without additional economic data.