Here's the truth about the latest fad coming from the Tax-Us-Into-Oblivion crowd, the VAT:
The VAT isn't an easy fix for budget woesI'll hand it to the Roanoke Times editorial team. They are at least up front about the fact that they want all taxes to be raised.
By Robert J. Samuelson, Washington Post
The value-added tax has become the designated panacea for massive federal budget deficits. It's touted by think-tank economists and mentioned by congressional leaders. A VAT could, it's said, raise stupendous amounts of money, which, Lord knows, are needed to cover projected deficits. A VAT is likened to a "national sales tax," so once in place, most Americans would barely notice it -- just as they barely notice state and local sales taxes. How's that for friendly politics? A VAT would also discourage consumption and encourage saving and investment, making America richer in the future. What's not to like?
Does anyone believe that Americans wouldn't notice 16 percent price increases for cars, televisions, airfares, gasoline -- and much more -- even if phased in? As for a VAT's claimed benefits (simplicity, promotion of investment), these depend mainly on a VAT replacing the present complex income tax that discriminates against investment. That's unlikely because it would require implausibly steep VAT rates. Chances are we'd pay both the income tax and the VAT, making the overall tax system more complicated. [link]
Unlike those who propose the adoption of the VAT. They simply want to confuse. To obfuscate. To misdirect. And raise all our taxes in doing so.
Oh, on a related note, you probably heard that "China's economy marches on as growth rate soars by nearly 12%."
That's not an accident.
Let's add the VAT to our lengthy list of tax obligations and see if we can get China's growth rate to 15%, shall we?