The VAT tax is coming

[CoolBreeze]

Most of Europe already has a VAT tax (value added tax). Some are as low as 3% of the purchase price while others are as high as 21%. ( this is Estonia where they have a Flat Tax. So a Coke at a dollar costs $1.21)

"Value added tax means nothing more than "we had to have a name for more tax to screw you with because we spend more than we take-in."

Almost everyone in liberal politics claim that since it's good enough for Europe, it's good enough for the United States, especially after we've spent trillions of dollars on useless spending. So on top of ALL the other taxes we pay (for instance, WV pays some of the highest "HIDDEN" taxes around) we will have a tax on top of tax on top of a tax. They claim this will go into effect before this president leaves office.

[genlock]

This is a NATIONAL sales tax. Hillary Clinton floated this once before.
It dies when the Republicans swept congress in '92.
When there is not enough tax to cover the proposed spending, It returns.
It is an economy killer.

[cgarison]

When there is not enough tax to cover the proposed spending, It returns.
It is an economy killer.

Bingo.

VAT will never happen in the US. Why? Because it is a flat tax on dollars spent and not a tax on dollars earned which eliminates loopholes in which rich people use to not pay taxes. Also, it would devastate the housing industry because there is no incentive to purchase a house (rather than rent) because home ownership is too expensive for all but the most wealthy in an economy where interest on mortgages is not deductible (along with property taxes) on houses.

Next.

[AmpedNow]

(for instance, WV pays some of the highest "HIDDEN" taxes around)

This state considers everything outside of basic utilities a luxury. Satellite radio, cell phones, cable and satellite TV, high speed internet, gasoline, a car less then 10 years old.

They never fully done away with the food tax, as promised several years ago. All other goods is still 6% -- among the highest in the country.

The gasoline tax is one of the highest in the country. An average of 30 cents difference between Mercer County and Bland County, VA, for example. Over the course of a year, this really adds up.

Yet we still have roads to nowhere and they say that more toll roads will eventually be needed, because the WVDOT is running broke...

Then, there's the income tax. Not among the highest in the country, but not many exemptions, and a pain to deal with when added up with everything else.

I'm sick now.

[Bob Campbell]

I'm not a fan of the VAT, but isn't that exactly what the "Fair Tax" people propose in place of a graduated income tax?

[genlock]

No, this is a sales tax.
An additional sales tax.

[CoolBreeze]

Well... IF this were to go into effect right now, it would be nothing more than another sales tax.

However, under "most" Flat Tax scenarios, this would be "mostly" THE tax. For instance, in Estonia the biggest tax that anyone pays is the VAT tax, which is (the last time I looked) around 21%. Simply add 21 cents to every dollar they spend, and you get the idea. A type of VAT tax is also on their income, but it's not nearly as crushing as ours. However, they DO have "health tax" also (around 2% last time I looked) that takes care of the national health care system. The point is that the biggest tax in that country is the VAT tax. Here meanwhile, it will be just another bullshit tax to take care of reckless spending.

[genlock]

The states (and some municipalities) will never give up their sales tax.
Once levied, taxes never go away.
In WV we used to have a pop-bottle tax to pay for WVU medical School.
Still have it in another form.

[Bob Campbell]

But the Flat Tax is a sales tax right? The plan I've heard about most is 17%.

[genlock]

I thought the flat tax was to replace the income tax.
It would be a percentage of income, flat across the board for everyone.
With no add-ons for social security, medicare, and the other with-holding stuff.
One number, no deductions for anything. None.
If congress wanted more money for, say, a war, they would raise the number.
That was the idea I got. Was I mistaken?

[CoolBreeze]

A true flat rate tax is a system of taxation where one tax rate is applied to all income with no exceptions.
But this income tax. All sorts of other taxes like the VAT Tax can be implemented as far as Sales, health care etc. In Estonia, which has had a flat tax rate since 1994, studies have shown that the significant increase in tax revenue experienced was caused partly by a disproportionately rising VAT revenue. As the Vat tax increases however, people purchase less, and government tax revenue start dropping. So it's a balancing act no matter what kind of tax base you have. The Flat Tax or Fair Tax implemented properly however, is light-years better than what we have now. In Estonia for instance, there are only 4 pages of tax forms & codes. These are good for multi million dollar corporations of the person making 12 grand. Four pages VS the many thousands we have here in the US.

[AmpedNow]

But the Flat Tax is a sales tax right? The plan I've heard about most is 17%.

Yes, but the idea is that it replaces virtually every other tax. You are taxed on consumption, not income. This is a much fairer way of taxation, if you think about it.

However, there would still be tax credits for low income families and big ticket items, like houses and cars below a certain value.

So, not only would the rich still be paying "their fair share" (which is never enough), but everyone that consumes anything would be a taxpayer.

We are taxed too much as it is. It's time for government to watch their spending, plain and simple. What is happening now is completely reckless and irresponsible. There is no way the American People would stand for yet another way for government to confiscate their hard-earned money. Nor should they.

Where are all of the national debt clocks now? We were constantly reminded of the deficit "crisis" throughout the Bush years... Obama has spent more money in 12 months than Bush did in 8 years, and he still wants to spend more. Much more.

The republicans were thrown out of office in 06 and 08 primarily because of "reckless spending"... What should happen to this merry band of idiots running the show now? If this kind of spending was happening under a republican administration, there would be all-out riots in the streets happening by now.

Enough already. Enough taxes. Enough two party systems. Enough everything.

[Bob Campbell]

Well, if everyone would go ahead and proclaim me as All Powerful Emperor, everything would be alright.

[The People's DJ]

Well, if everyone would go ahead and proclaim me as All Powerful Emperor, everything would be alright.

Sorry. That job's been taken.

[Bob Campbell]

Whew! I would've been worried if it had been me.