The Value-Added Tax: Financing the Road to Serfdom
by Dan MitchellIf government-run healthcare is approved, it is very likely that politicians will then look for a new revenue source to finance all the new spending that inevitably will follow. Unfortunately, that means a value-added tax (VAT) will be high on the list. Indeed, the VAT recently has been favorably mentioned by powerful political figures and key Obama allies such as the Co-Chairman of his transition team and the Speaker of the House.
The VAT would be great news for the political insiders and belteway elite. A brand new source of revenue would mean more money for them to spend and a new set of loopholes to swap for campaign cash and lobbying fees. But as I explain in this new video from the Center for Freedom and Prosperity, the evidence from Europe unambiguously suggests that a VAT will dramatically increase the burden of government. That’s good for Washington, but bad for America.
It’s worth noting that even if the politicians are unsuccessful in their campaign to take over the health care system, there will be a VAT fight at some point in the next few years. This will be a Armageddon moment for proponents of limited government. Defeating a VAT is not a sufficient condition for controlling the size of government, but it surely is a necessarry condition.
Some of you may wonder whether a VAT is acceptable as a total replacement for the current income tax. In another video, comparing the flat tax and national sales tax, I explain that a low-rate, consumption-base system would be great. But I don’t want that kind of tax in addition to the current internal revenue code. And that is exactly what Obama, Reid, Pelosi, et al, have in mind.
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If they want a VAT tax, FINE! Get rid of every federal income tax.
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No to VAT! I already have to pay 8.10% sales tax on non-food items! I work a minimum wage job while trying to go to college, and it costs me around $20-$30 a week in food because the prices keep going up! GAH. If they want a VAT, then get rid of the income tax and drum down sales tax!
The higher the overall tax rate equals greater power over the populace. It is all about power and money, money and power, the two cannot be separated. The socialists will make criminals out of the common man while making him a pauper. They will deny him medical care and even food in their quest to remake this country into the nightmare of their utopia.
El Rushbo the Maha Rushi has it right, Liberalism is a disease.
Nope. There is a reason why Socialist Europe preferes the VAT – it's hidden from taxpayers. Instead, we should get rid of tax withholding and have everyone write one check per year for their federal tax burden (including SS and Medicare). If people had to write one check that included the Whole Enchilada, it would give them a better perspective and appreciation of the yoke they carry around their necks to pull the cart of parasites.
Oh, once again I see that Velociman was way ahead of the curve on this.
Oh, once again I see that Velociman was way ahead of the curve on this.
The VAT. You're soaking in it!
No to VAT, yes to Fair Tax. First and foremost the Fair Tax legislation abolishes the 16th amendment and subsequently the IRS. There's your money saver right there. If you guys haven't read the The Fair Tax Book, you oughtta. It's surprisingly a good read for a book about taxes.
Here is one of the greatest reasons to clean up DC. Let's throw them all in a VAT………………….of tar!!!!
If Congress is so drunk on their latest stimulus, Cap and Trade, etc., and they think they can come back at us and push a Healthcare Bill that costs a fortune when it should cost nothing by imposing a Tort Reform and cross State purchasing…they have another thing coming. The American people are so furious over their creation of generational debt they will never be able to sell this to us. WE are awake Congress and WE are on to YOU and YOU will realize that YOU work for US and WE do not work for YOU!
[...] good for Washington, but bad for America. [There is a video that cannot be displayed in this feed. Visit the blog entry to see the video.] It’s worth noting that even if the politicians are unsuccessful in their campaign to take over [...]
The CON-gress is calling for more and more taxes while this http://www.breitbart.com/article.php?id=CNG.ff412... is happening. Just shameful !
I wrote about this last week. See here.
Ok, my link was eaten somehow.
http://chrisofrights.blogspot.com/2009/09/vat-tax...
Great analysis. You're right on.
[...] income tax — and they want to increase the income tax and other taxes at the same time. Mitchell explains that they need the taxes in order to fuel their drive towards [...]
The VAT is an in-road for stealth taxing. It's the slippery slope we cannot get on–that and a dedicated National Insurance tax.
My goodness this is just leading to FAILURE of epic proportions. People look at Europe.
America should be so proud
Obama money ….
http://www.youtube.com/watch?v=19v5Kjmc8FI
We shouldn't be looking to be free of sales taxes. It's through these that the states function. The VAT is just a way for the Feds to cut in on the action and weaken the states financial positions and make them too more dependent on big government.
[...] [There is a video that cannot be displayed in this feed. Visit the blog entry to see the video.] [...]
I'm not so sure a VAT tax wouldn't be the Fed cutting in on the States action. By doing so they would be in a position to weaken the state governments further and make them more reliant on the federal government.
From the NY Post::
After printing up trillions of new dollars and new bonds to stimulate the US economy, the Federal Reserve chief is now boxed into a corner battling two separate monsters that could devour the economy — ravenous inflation on one hand, and a perilous recession on the other.
"He's in a crisis worse than the meltdown ever was," said Peter Schiff, president of Euro Pacific Capital. "I fear that he could be the Fed chairman who brought down the whole thing."
The government will never ever (sans a Reagan disciple) reduce taxes in totality or from the plethora of sources from which it dips. The thought of a national VAT causes them to salivate like Pavlo’s dog.
Similar to the gas tax, a VAT is a clandestine source of revenue that once in place will only grow, and like a cancer will flourish until it’s host(American economy) gives it’s last breath. The tax on gasoline is similar in that we usually don’t about it when prices skyrocket but aim our rath at producers. Out of sight- out of mind. How many people can answer “how much tax do you pay on a gallon of gas”? (federal tax – 18.4 cents;combined federal,state,local average – 45.9 cents) Government makes over twice as much per gallon as refineries do. Talk about windfall profits!
The VAT is much stealthier than the gas tax. You will not be able to readily find out what proportion of your cost is taxes. It is the tax that keeps on giving. An example: Ore is turned to bulk steel- VAT; steel is turned to screws – VAT; screws are used in component – VAT; component is used in final product – VAT. And if you live in sales tax area, be prepared to pay tax on hidden VAT portion of the cost.(tax on tax)
Just as there are those that wish to “spread the wealth”, there are those that wish to “spread the tax”. When you hear anyone(that is not a true conservative) propose any new tax, you’d better get out the magnifying glass.
Obama and his minions = VAT
VAT = Vast Arbitrary Tyranny
correction – "The tax on gasoline is similar in that we usually don't >THINK< about it …"
Federal Income Tax
Social Security Tax
Medicare Tax
Unemployment Tax
Corporate Income Tax
Gift Tax
Estate Tax
Gas Tax
State Sales Tax
State Income Tax
Sin Tax
Property Tax
County Tax
City Tax
Capital Gains Tax
Luxury Tax
Hotel Tax
This is obscene. I'm sure there are many other types of taxes I've missed…
Barter, off-the-books economy, here we come.
The real question is, "Is a VAT Constitutional?"
5,000% vat on each face job……pudlosi just paid the national debt …………
Keep it up you liberty hating socialists, revolution in in the air.
Keep it up you liberty hating socialists, revolution is in the air, and coming soon.
You can only fool the useful idiot for so long until the God given yearning for freedom kicks in.
Sorry, thanks for playing! It will be in addition to the IRS, not instead! All part of the plan to take over the entire population and force us into serfdom under "The One's" magnificent leadership. I'm so excited! I can't wait for the marxist "Dear Leader" to take care of me! Oh wait, I'm old, so I will have to take a "pill" instead of any beneficial medicine, 'cause I'm so useless.
[...] [There is a video that cannot be displayed in this feed. Visit the blog entry to see the video.] [...]
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[...] why a VAT won’t eliminate budget deficits over 3 months ago. Dan Mitchell has also been beating this horse for a while [...]
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It's beyond absurd that the country has got into the situation it is in today.
And it only proves the American people are nothing but AmeroConned Sheeple who will let their government masters steal every penny possible while also bankrupting the country.
Yes, Cap-n-Tax and VAT are coming and the AmeroConned Sheeple will willingly take in the shorts again.
Links…
[...]Sites of interest we have a link to[...]……
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