A U.S. VAT Tax .......is it coming?

[JustRalph]

We all know Obama wants us to be more like Europe..........what's next.....

http://www.washingtonpost.com/wp-dyn/content/article/2009/05/26/AR2009052602909.html?wprss=rss_politics


Once Considered Unthinkable, U.S. Sales Tax Gets Fresh Look
Levy Viewed as Way to Reduce Deficits, Fund Health Reform

With budget deficits soaring and President Obama pushing a trillion-dollar-plus expansion of health coverage, some Washington policymakers are taking a fresh look at a money-making idea long considered politically taboo: a national sales tax.

Common around the world, including in Europe, such a tax -- called a value-added tax, or VAT -- has not been seriously considered in the United States. But advocates say few other options can generate the kind of money the nation will need to avert fiscal calamity.

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.

"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."

more at the link

[lamboguy]

isn't this the type of tax that the right wing loves? seems to me the republicans have always tried to get you on this one.

just goes to show you, all this govenment wants to do is get you for whatever they can lift out of your pockets. on this tax there is no such thing as getting around it. in europe and canada if a guy gets caught trying to cheat you get big time in the slammer.

[jballscalls]

so much for no sales tax in oregon!!! thanks obama and geithner

[robert99]

Value added tax, VAT, is not the same as a national sales tax - it is a cascading tax. At each stage of a service or goods provision the tax is passed on to the next buyer/user in the chain and tax as to any value added is charged. As the cost goes up at each stage, the VAT charge goes up. The consumer is at the end of the chain and pays the full VAT, whilst all the intermediaries claim back the VAT they have paid. Businesses buy at zero VAT tax and consumers pay the full tax, about 15-20% extra. The rich get richer and the poor end up paying the full cost.

"Organised criminals (and "legitimate" businesses) earn millions from tax fraud while EU cooperation on the issue is gridlocked. This series of five columns looks at the problem and suggests that the German EU Presidency is pushing the wrong solution. This first instalment below considers essential technical aspects of the VAT"

http://www.voxeu.org/index.php?q=node/256

[boxcar]

isn't this the type of tax that the right wing loves? seems to me the republicans have always tried to get you on this one.

just goes to show you, all this govenment wants to do is get you for whatever they can lift out of your pockets. on this tax there is no such thing as getting around it. in europe and canada if a guy gets caught trying to cheat you get big time in the slammer.

We only love it, if the 16th Amendment is repealed. We may not always be the brightest bulbs in the bulb factory, but we're not stupid either.

Boxcar

[ArlJim78]

Its to be expected. the numbers don't add up. China has said no more printing money, they certainly won't make the necessary cuts or scale back Utopia 2.0, revenue is down and any growth we'll see is going to be anemic. hence we can expect them to continue to mine for new directions to go with taxes.

[cj's dad]

isn't this the type of tax that the right wing loves? seems to me the republicans have always tried to get you on this one.

just goes to show you, all this govenment wants to do is get you for whatever they can lift out of your pockets. on this tax there is no such thing as getting around it. in europe and canada if a guy gets caught trying to cheat you get big time in the slammer.


Were that true, which it is not, the VAT would have been introduced by the Bushes. This is a regressive tax which screws the folks who have more $$ to spend than those who are gov'mnt reliant.

[slewis]

Were that true, which it is not, the VAT would have been introduced by the Bushes. This is a regressive tax which screws the folks who have more $$ to spend than those who are gov'mnt reliant.


Not true CJD... This is the tax that Huckabee pushed in his campaign.

It absolutely hurts the poor more than wealthy (on a percentage basis)because EVERYTHING purchased adds a flat percentage tax.

Makes little difference anyway...... If they implement any sort of VAT or consumption tax it would be the end of our recovery.

Recoveries start in the major business center-cities. (NY-CHI, etc).
Take NYC for example.... 8 1/4% sales tax already to pay for services provided.

Now add 10-12% on top for a VAT and you're looking at the consumer paying 20% MORE for every product???? Ouch....

Retail will get KILLED.

You'll really see businesses flying out of the big cities.....

Main reason Geithner squished the idea.

[Tom]

What recovery????

16,000 jobs a day still disappearing, Chrysler in bankruptcy, GM heading there, the debt going through the roof, China is lecturing the Fed about our moronic spending, gas prices going back up........yet the Messiah says it is no time to rest on his laurels. I suspect he thinks laurels are his butt cheeks!

Our day of reckoning is yet to come.

A VAT tax is so idiotic I give it a 90% chance of happening.
We are dealing with money hungry whores in DC.

[JustRalph]

If they Pass it I hope they name it right


"The Black Market Initialization plan"