Speaker Nancy Pelosi joined a growing liberal chorus calling for a massive tax hike through the implementation of a value added tax (VAT). A VAT is similar to a national sales tax. Businesses would pay it at each stage of the production process and consumers at the cash register. European countries have had VATs for years.
As we pointed out earlier this year, Congress should not pass a VAT to pay for a government takeover of the health care system or expand the size of government. If it does so, it will be a massive tax hike:
Just a 1 percent VAT on all goods and services in the economy would raise $63 billion for Congress to spend each year. Some suggest the VAT rate should be set as high as 20 percent. At that rate, a VAT that covers all goods and services in the economy – including food, clothing, housing, and health care – would collect an additional $1,260 billion a year and cost every U.S. household $10,680 annually.
Even if Congress passes a VAT that has a rate of just a few percentage points, it would likely lead to higher rates in the future. Evidence from other countries that already have VATs show once it is on the books the rate tends to rise over time.
The American people would be better off if Congress stopped spending and instead reformed existing entitlements to make them more affordable and effective. Adding a new entitlement will only make the country’s fiscal situation worse and make painful tax hikes more likely.
Let's stop and ask:
ReplyDelete"What exact new government service will this money pay for? All the present services should have already had funds appropriated, so it can't be to pay for those. So, what is this new service that we need, and exactly what will be the dollar amount cost?
Good questions, Orsonwells!! All Americans need to start asking questions and expecting answers from our elected officials, before it's too late. Our country is being hijacked by the very people we put in office!! We have to take our country back!
ReplyDeleteJoe,
ReplyDeleteRemeber the folks you are asking to stop spending and reform existing entitlements are the same folks that vote themselves a payraise while asking for everyone to sacrifice for the coutry..
Pelosi claimed the money is needed to pay for Health care.
ReplyDeleteNancy Pelosi is more dangerous than the President. What a slap
ReplyDeletein the face to hard working people.
The goverment should tax to hell on non health related procedures.
Nancy Pelosi should be the first with all her face lifts.
Now isn't this the same idea that was passed around some years back? A national sales tax, but to replace the income tax. Making taxation an equal playing field. I think, that was just to quiet the muttering of the middle class, who in fact pay most of the taxes. The Dem's shot it down because it was seen as a tax cut, and the Rep's didn't push hard cause they didn't want the price of their Jaguars going up. $85,375 + 0.05 tax = $89,643. Now thats just wrong. They can't pay that much. Sell just 500 and tax is over 2mil.
ReplyDeleteI like the idea of everyone paying on what they consume, not, what they earn.
Congrass, pass the VAT, kill the IRS.
I'm, And More Andy Wonney
Goodnight.
Think about these five very profound sentences.
ReplyDelete"You cannot legislate the poor into prosperity by legislating the wealthy out of prosperity.
What one person receives without working for, another person must work for without receiving.
The government cannot give to anybody anything that the government does not first take from somebody else.
When half of the people get the idea that they do not have to work because the other half is going to take care of them, and when the other half gets the idea that it does no good to work because somebody else is going to get what they work for, that my dear friend, is the beginning of the end of any nation.
You cannot multiply wealth by dividing it."*
*Adrian Rogers, 1931
Wait, Wait. You guys must stop saying this.
ReplyDeleteGlenn Beck has been saying this so either you're all nut cases like him, or you're not getting the facts.
The facts can be found at the Democratic Underground website.
That's where only super intelligent, guilt-ridden white folks provide answers to all of these questions.
The main problem has been identified to be all capitalist pig white folks that work for a living.
Those pigs don't pay enough taxes and their houses are way too big.
They believe in God too.
All those white folk need to stop complaining and work harder so the other 60% don't have to.
But Obama said he would NOT raise taxes.
ReplyDeletefairtax.org
ReplyDelete