Example.
You just joined my town. You are poor, and I have tax, so I say I'll give you free VIP.
You now get all excited cause you're a citizen nub and you think you're getting the donor rank.
All of your hopes and dreams are now shattered when you receive this towny VIP, and realize all you have is no tax.
You get sad and leave.
Make sense?
People who just joined don't know the difference, hence the suggestion.
If you don't have the common sense to differentiate to new players between town vip and vip the rank then I don't feel like that's the name's fault
Additionally if someone leaves your town because you didn't spend 10 dollars on them for free then you really didn't want them in the first place
EDIT: I don't care if it's done or not. it just seems like extra work that never will get done considering the devs (apparently) generally have more important things lined up