This is tax reform?
From the Washington Post:
“There is a growing awareness of the need for fundamental tax reform,” Sen. Kent Conrad (D-N.D.) said in an interview. “I think a VAT and a high-end income tax have got to be on the table.”
With income tax “revenues” plummeting 34% in April of 2009 compared to April of 2008 the parasites in Washington are looking for another way to extort from the industrious.
Instead of getting rid of the welfare state, stopping the funding of the United Nations, and eliminating mindless squandering, the looters in Washingon D.C., never letting a good crisis go to waste, are considering and national sales tax.
At a White House conference earlier this year on the government’s budget problems, a roomful of tax experts pleaded with Treasury Secretary Timothy F. Geithner to consider a VAT. A recent flurry of books and papers on the subject is attracting genuine, if furtive, interest in Congress. And last month, after wrestling with the White House over the massive deficits projected under Obama’s policies, the chairman of the Senate Budget Committee
declared that a VAT should be part of the debate.
The national sales or “Value Added Tax” would not replace the punitive, egregious, and incomprehensible income tax code. No, instead, it would be levied on top of the income tax. Early estimates put the tax anywhere from 10% to 25%.
A VAT is a tax on the transfer of goods and services that ultimately is borne by the consumer. Highly visible, it would increase the cost of just about everything, from a carton of eggs to a visit with a lawyer. It is also hugely regressive, falling heavily on the poor. But VAT advocates say those negatives could be offset by using the proceeds to pay for health care for every American — a tangible benefit that would be highly valuable to low-income families.
The VAT would raise the cost of everything bought and sold in America by an amount compenserate to the amount of the tax.
Although a white house official says that it is unlikely that a VAT would be looked to for funding ObamaCare, it is hard to rule out. Especially, considering that Michigan’s governor and architect of a one state depression, Jennifer Granholm along with Ezekiel Emanuel, brother of White House chief of staff Rahm Emanuel, are among the president’s economic advisers.
One compelling argument for levying a VAT is, everyone else is doing it.
Exactly what “Value” would a VAT provide and to whom?
God help us!