Wednesday, April 7, 2010

Morning Bell: How the Left Really Plans to Pay for Obamacare - VAT

As a Fair Tax proponent, where the entire tax stands out on each purchase, vs. the VAT that is hidden in every stage of production and trade, I can see the problems of the VAT in controlling government costs. What you don't see doesn't bother you as much. That is why Congress and the Democrats want the VAT. In each case the tax rates can be easily increased, but in the case of the Fair Tax, you see it's full effects immediately. In addition, the Fair Tax plan eliminates all other taxes whereas the VAT plan is an additional tax added to all other taxes now in existence. Get on the horn and tell your Congressman to vote against any VAT proposal.

The left’s solution to this problem has been simmering for some time now. Senate Budget Committee chairman Kent Conrad (D-ND) floated the idea to The Washington Post last May. Speaker Nancy Pelosi (D-CA) told Charlie Rose it was “on the table” in October. And yesterday White House adviser Paul Volcker told the New York Historical Society it should be considered. The “it” here is a Value Added Tax (VAT), which is a fancy way of saying national sales tax.

A VAT can be (and has been) structured in many different ways. But the real world results are always the same: higher taxes, more government spending, lower growth, fewer jobs and more special interest power.
Read article here.

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