Something dark and evil is brewing over the horizon in Washington. It comes from the bowels of European socialist model soon to be transplanted in the heart of America by our socialism loving Congress. It’s the VAT tax!
The VAT tax or Value Added Tax is a tax that is levied on goods or services during each stage of production e.g. a raw materials supplier charges VAT to the manufacturer. The manufacturer then charges VAT to the wholesaler and finally the wholesaler charges VAT to the retailer.
The insidiousness of the VAT is that you the consumer will not see or pay the tax directly. Instead, the VAT tax is charged to you indirectly in the form of higher prices.
Governments love this tax because it provides a mother load of cash by repeatedly taxing a single product. The example I gave above is simple, but think about how much money a government would make when VAT is applied to complex products like electronics or cars. You can just imagine how much higher the prices of those items will be.
While greedy government spenders love the VAT tax, manufactures do not. The VAT tax makes producing products very expensive. If you thought manufacturing jobs are fleeing the United States now, just wait until VAT gets here.
Already trial balloons for VAT are being floated around Washington. White House economic adviser Paul Volcker raised the issue the other day. In addition the CBO has been receiving questions from Congress about a VAT tax.
I find the whole VAT idea to be pure evil. First, during this time of economic hardship the last thing any of us needs are higher prices on our goods and services. This tax would not be necessary if Washington had listen to our objections over bailouts, stimulus and the take over of health care. Now that they have run up the tab against our wishes, they wish to impose higher prices on our lives to pay for it. Outrageous!
No doubt the Democrats will try to sell the VAT as a necessity to pay down the debt and they will try to sell us a bogus story that consumers will not have to pay it. They may even try to say it will only be temporary. All of these talking points will be flat out lies.
Gird your loins folks, VAT is coming.
Via: Memeorandum
Via: The New York Post
Via: The Weekly Standard
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8 comments:
Anybody with common sense knows that a VAT will drive prices way up. As you say, it will kill manufacturing in this country. Obama supporters are so gullible, that I'm sure they will buy into the lie that it won't affect consumers.
I read somewhere (don't remember where) that countries using the VAT don't generally have an income tax. It's either/or but not both, which makes sense. Leave it up to the pigs in W-DC to strap us with the VAT *and* increasing income taxes. Par for the course.
I've had it up to my eyeballs with the crap. Every year the IRS finds some way to screw me out of about 85% of the income tax refund I'm supposed to get to cover obligations that under law are not even mine (their creative accounting overrules my accountant's, of course). I'm ready to hang it up and take the disability I am ENTITLED to, which I've paid into for the last 20+ years. I know I'll never get it if I don't do it soon, before they get rid of me through Obamacare and/or SS reaches insolvency.
The VAT may be coming, but so is November and to all who say repeal never happens....one word, Prohibition.
trinity:
I cannot imagine anyone who doesn't think VAT will lead to higher prices. Just look at the price of electronics in the EU compared to the US. Even with monetary conversions the price is insane. I have friends from the UK, when they visit the US they go hog wild shopping because with the conversion and lack of VAT everything is way cheaper.
Angie Lee:
I too would not have a problem with VAT if it replaced the income tax. We would at least have more money to spend to pay for it. But double dipping? That is evil!
I hear you on the entitlements thing, I am self employed and have to do the quarterly tax thing. I deliberately short change them so I end up owing a little bit at the end. I will make NO interest free loans to the IRS.
Janelle:
I like your style! I wish every American had your attitude. Political hucksters would be a thing of the past.
Didn't we hear that obamacare was going to save a bunch of money and lower the national debt and all? Taxes for it are supposed to start right away but it will not be fully implemented for a few years so... where is that money going and why is the gov't so desperate for money?
The money they collect between now and 2014 will be to build the bureaucracy.
Yet more proof of the Ponzi scheme it is.
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