Europe v2.0 "What the heck is V.A.T. (look out for this one)

[twyacht]

Starting to hear rumblings that BHO's pit-bull Rahm Emanuel's brother Zeke and some members of Congress want a review of the Value Added Tax, aka National Sales Tax.

It has been around in Europe for some time.  Kinda like the old luxury tax that sunset a few years back, but it would effect everything you buy. Tax added at the manufacturing level, another tax at the distribution level, another at the retail level, and another at the consumer level. 

This would be in ADDITION to Income Tax (federal, state, local, city, etc,...).

http://corner.nationalreview.com/post/?q=ZDg5NTBiMDE5NGMwMDc4MzJiYzVhNmE0YTI3NzRlMDY=

Wednesday, May 27, 2009

The VAT Cat Is Out of the Bag   [Larry Kudlow]

Everyone should closely read today’s Washington Post story on the value-added tax, or VAT. The cat is now out of the bag. For months I have argued that Team Obama and the Democratic Congress were going to be forced to consider a VAT in order to pay for their extravagant spending. Now borrowing almost 50 cents on every new dollar spent, the Democrats will at some point begin to deal with the politics of deficit reduction as a way of countering Republican criticisms about deficit expansion. And the VAT’s part of their answer.

Senate Budget Committee chair Kent Conrad calls the VAT “fundamental tax reform,” and he argues for a VAT plus high-end income-tax hikes. The WaPo story talks about a White House conference earlier in the year where “a roomful of tax experts pleaded with Treasury Secretary Timothy F. Geithner to consider a VAT.” Budget chief Peter Orszag hired prominent VAT supporter Ezekiel Emanuel — the brother of White House staff director Rahm Emanuel — as an adviser.

Of course, President Obama blew an even bigger budget hole into long-run planning with a cap-and-trade proposal that would exempt 85 percent of the tradable emissions warrants from any auctions. In other words, it’s a free lunch, making a bad idea even worse. But the Democrats are going to want to hang on to their massive increases in social-spending transfer payments, along with the big expansion of health care and who knows what else.

Now remember, this VAT tax would come on top of existing income, payroll, and business taxes. This is how the European countries and many others do it. And the VAT is a tax imposed throughout the economic food chain, at all levels of production, finally ending up inside the consumer pocketbook.

The VAT is a sure way to permanently depress economic growth. It’s also a sure way to Europeanize the American economy. But at some point, after the economy gains at least some cyclical economic-recovery traction, the Obama Democrats will want to re-label themselves as deficit-reduction fiscal hawks. Hence the VAT, a real bad idea.

End.

Now BHO said taxes won't go up for people making less than $250,000 a year, but he never said that a National Sales Tax on all goods would be off limits.

With IRS revenue down 34%, and BHO stating "We're Out Of Money" look for some ideas that come from BHO/Libs favorite model:

EUROPE.

Thinking of the Beatles song regarding taxes.....

[m25operator]

TW you never cease to amaze me, on point of course,  everbody  read this and pay  attention.  " Cause I'm the taxman "

[Overload]

A national sales tax, aka flat tax, is a great idea as long as it REPLACES the income tax.  25% is almost more than we pay currently.  Think of all the money we'd save preparing our taxes, and how much money the government would save eliminating the IRS.

[True_Texan]

A national sales tax, aka flat tax, is a great idea as long as it REPLACES the income tax.  25% is almost more than we pay currently.  Think of all the money we'd save preparing our taxes, and how much money the government would save eliminating the IRS.

It would be nice if it did indeed replace income tax and not be an addition to it. Just think of all the illegal workers who don't report income or those who find away around paying it. EVERYONE would be forced into paying the tax (although you would have a lot more tax exemption status being filed)... If you buy something, you are paying your share of tax.

Status *Helmet and body armor donned*

[Rastus]

Lots of people getting cash money and handouts around here.  Guys making $100k cash money doing lawns and paying no income tax around here.  I remember some years ago an acquaintance complaining about not getting the Bush tax rebate....he was making 70k a year paying no tax....ya'll know what I told that guy. 

[Sponsor]

[MikeBjerum]

Without digging into all the ways it can go wrong I am all for replacing current income taxes with sales tax (National and State).  I believe that if you exempt food, clothing, medicine and housing you will protect the basic needs of everyone, rich and poor, fairly.  Beyond that you will tax everyone equally on ability to pay.

Among the issues I see is that as soon as an economic downturn comes those in power will start ramping up the need to collect off income, starting with the so called rich and trickling down to darn near everyone.  I don't see them doing away with the IRS, because they would still want to track income and taxes, and no one in DC would want to be responsible for eliminating 92,800 comfortable good paying jobs http://www.nteuirswatch.org/Numbers2.htm

My favorite question that always goes unanswered ...

When times are tough for the American family we tighten our belts, we work harder, we downsize, but during the same time the Government expands spending, enlarges their programs and looks for ways to take more from frugal Citizens ... WHY?  And, how can anyone consider this good?

[mudman]

  TAX PAYER REVOLT THE ONLY WAY TO STOP THE DEMOCRAPS & REPUBLICRAPS FROM SPENDING US IN TO COMMUNISM
A national sales tax would take that power away from us.   TAKE THE MONEY AWAY FROM FEDZILLA NOW NOW NOW REVOLT NOW
NO MORE MONEY

[tombogan03884]

I've said it before but economics is NOT my best subject, but whats wrong with State sales tax to fund things like education and other STATE requirements and Tariffs on the millions of tons of imports to fund the Federal govt.

[Hazcat]

The tariffs would be unimaginably high.

Support the fair tax pushed by Boortz.

[MikeBjerum]

Support the fair tax pushed by Boortz.

I finally get to ask it of Haz    Do you have a link for a fat lazy bastard to look at