Coming to America: The socialist 25% sales tax – Value Added Tax (VAT)

The “Value Added Tax” or VAT for short, which is common in Europe (aka socialist countries) may be coming to America soon. Remember when Obama kept saying how no one making over $250,000 would see their taxes going up? Of course, since then, cigarette taxes have been, and even though i’m not a smoker, i’d venture to say many people  who buy cigs make less than $250k per year. The Value Added Tax is basically a sales tax that would be at a rate of about 25% of whatever the price is. According to Wapo advocates say few other options can generate the kind of money the nation will need to avert fiscal calamity (aka, pay for socialized health care and the entitlement programs).

“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.”

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.

Liberals dispute that notion. “You could pay for it regressively and have people at the bottom come out better off — maybe. Or you could pay for it progressively and they’d come out a lot better off,” said Bob McIntyre, director of the nonprofit Citizens for Tax Justice, which has a health financing plan that targets corporations and the rich.

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May 28, 2009 · Filed Under Democrats, Socialism, Socialized Heathcare


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