Tax package Bush will sign guts middle class {"Fair" Tax replaced by VAT in "Tax Reduction" Bill}

WorldNetDaily / Commentary ^ | Posted: May 26, 2003 | By Joan Veon

[George Frm Br00klyn Park]

WorldNetDaily / Commentary

Bush tax package guts middle class

Posted: May 26, 2003
1:00 a.m. Eastern

By Joan Veon
© 2003 WorldNetDaily.com

Using tactics of deceit and distortion, President Bush will sign a tax bill that was literally dictated by him to Congress and passed by the Senate late last week while the writers were still crafting it. What is being put into action will not only completely gut our entire tax code but will add a level of taxation that heretofore was only known by the children of Israel when pharaoh commanded them to make bricks without straw.

The tax deductions have been sold to the American people as creating more jobs but the truth of the matter is that Congress feels you and I are not paying enough in taxes. What Bush has done, Clinton could not have ever gotten away with: a tax on everything we buy – otherwise known as a Value Added Tax – for you and I.

If you think you pay a lot in tax now, just wait and see what the Republicans – or should I say, "neocons" have in store for us. Let me give you a glimpse.

First, a Value-Added Tax system is a more "purer" form of tax because it is structured like the morning dew – it will tax everything and every process . For example, currently you are not taxed on the activity (not the gain but the activity) of buying or selling a house. Under a VAT, we will be taxed. Currently you are not taxed for the professional services of our doctor and dentist – those services will have a tax.

The basic structure of a VAT is that it is essentially equivalent to a tax on wages and pure profits – in other words, it is a superior form of tax. In fact, it is a "vertical" tax – depending on how the VAT is structured, every phase of manufacturing and production will be taxed. Currently it is not taxed. For example, the farmer who grows sheep will pay a tax to buy the sheep, then, when he sells the sheered wool, the weaver who buys it from the farmer will pay a tax on that purchase. When the weaver who spins the wool into fabric sells it to a pants factory, the processed wool will be taxed. When the factory sells the pants to the department store, another tax will be levied. At each phase, while there may be some offset in the tax between the various stages of production, you will be taxed on the cost of the shirt which also includes the tax that was paid at each phase. Will the price of the shirt increase – absolutely! So will the cost of living.

According to the International Monetary Fund, the VAT is a more modern tax, providing the ability to tax each phase of production and also the turnover of goods and services, thus increasing the cost to live while providing a greater income stream to the government. A VAT is basically sustainable development at its finest. Government can't continue spending unless it increases its income stream!

Now this brings me to another point – the need for government to increase their income. Do you remember John Maynard Keynes and his socialistic "Keynesian economics"? Essentially, back in 1933 when America went into a major depression, Franklin Roosevelt relied on the "innovative" thinking of Keynes who recommended deficit spending to create new jobs. Well, 70 years later, every level of government in the United States is broke.

Currently, the U.S. government is $7 trillion in debt. Democrats, who have opposed this bill from the beginning, project that under the weight of the huge tax reductions being given to the very wealthy, that by 2013 when it is fully phased in, our debt will rise to $12 trillion or $36,000 for every person in the United States. Basically the July tax rebates we are going to receive will help contribute to this figure.

Nothing like paying one credit card with cash from another!

Furthermore, instead of you and I paying taxes and receiving a service, we now live in a time when our government is privatizing (selling its assets to reduce its debt), changing the code so it can increase its income while reducing services to you and I. Under the current tax system, mortgage interest and charitable contributions are deductible. These will have to be sacrificed to provide the government with a greater and constant income stream. Simply put, a "pure tax" is basically "squeezing" the turnip – which is you and I.

So how does a government with a VAT increase revenue? In order to switch to a VAT from our current system of taxing income, the tax brackets of the rich will be reduced from 38.5 percent gradually over a 10-year period to the targeted 21-27 percent VAT rate. This level of taxation is the level that will produce the same amount of tax under our current system. At the same time, the tax brackets of those who have an income of $1 million and above is being reduced, those who currently don't pay tax because they have too little income will have be subjected to an increasing tax bracket which may start out at 10 percent but will have to rise to meet the brackets of the extremely wealthy at 21-27 percent. Is your back breaking yet?

So – what if, in this time of never-ending war on terrorism, the government still does not have enough income? Well, then the rate can be increased. For example, in 1973 when England introduced the VAT, it started at 10 percent ... today it is up to 18.5 percent.

Lastly, the president and his cabinet are unwilling to even admit that they are gutting the current system and putting a VAT in place that will benefit those like Warren Buffet who calculated that he will save $300 million while his secretary's tax rate will increase. This tax bill should be more accurately called, "The Gutting of the Middle Class."

Joan Veon is a certified financial planner and is president of Veon Financial Services, Inc., an investment advisory firm. Visit her website, WomensGroup.org.

THIS article at WND

[George Frm Br00klyn Park]

"tax package guts middle class"

All, But then, that's what any sales taxes are designed to do. The VAT just does it "better and faster." Urged by the International Monetary Fund, accepted and implemented by socialist governments everywhere.

Maybe Russia today is a better place to raise your children.
They now have a flat tax based on income that works. But, give them a few years, and they will succumb to the socialist power giving structure of graduated income taxes, and deductions and exemptions to government's chosen entities of the day that the U.S. of A. politicians and bureaucrats of today enjoy. Coming for YOUR children. Ain't it grand?? Peace and love, George.

[tort_feasor]

Where in the tax package is a VAT tax included? I think the writter of the original piece is having a bad day.

[galt-jw]

and my oh my, this is in the ol world net daily, a source often quoted by tribalist, hypocrite pubbie bushbots who cited the very same source when critizing klintoon about THE VERY SAME ISSUES. what a farce. less principles than even the DNC.

At least there is no deception concerning what the DNC claims to espouse: socialist tyranny. The pubs haven't even the ephemeral decency to admit they are going to grow the fedgov just as the libs will, take away rights, just as the libs will, tax us to death-as more jobs are lost to tax friendly nations, just as the libs will.

any of you fools who FAIL to vote third party deserve what you are going to get. And I will mock you openly on this forum when you whine regretfully about your lost freedoms and the machines of tryanny and control that will be irreversible once implemented.

After eight years of massive abuse of power by Klintoon, with the powers of the fedgov less intrusive than today, it does not take a psychic to see what will happen with another klintoon, nixon, etc., after massive govt. surveillance and fedgov expansion of power.

[George Frm Br00klyn Park]

Currently, the U.S. government is $7 trillion in debt. Democrats, who have opposed this bill from the beginning, project that under the weight of the huge tax reductions being given to the very wealthy, that by 2013 when it is fully phased in, our debt will rise to $12 trillion or $36,000 for every person in the United States. Basically the July tax rebates we are going to receive will help contribute to this figure.

Nothing like paying one credit card with cash from another!
==========================================

Guys, Coming soon to YOUR{?} government. Peace and love, George.

[SubMareener]

or should I say, "neocons" have in store for us.

Remember, neocons => Jews. This is an anti-semetic rant. That is why it is so hard to find reason in the words.

[gitmo]

I can't find the phrase "value added tax" in the bill. Is there some legal double-speak that would conjure up VAT?

[George Frm Br00klyn Park]

"last week while the writers were still crafting it."

TF, The bill is still being written before and while and after the votes are taken in Congress as have been a few other truly nefarious pieces of legislation such as NAFTA, and GATT, because they were "so important" for our future. Joan wrote an earlier article on this same subject. I'll try to find the original text of the legislation. By the way, When Joan writes that the "Democrats are against this bill because of the VAT", she IS wrong! Though it will make for a good talking point for the next election cycle. We'll see if they bring it up. Peace and love, George.

[HatSteel]

I believe in a national retail sales tax INSTEAD of an income tax. I don't believe it is possible to "phase" in the idea of an NSRT while the income tax remains. Politicians will bring in the new and never get rid of the old.

I know them.

But the VAT's levels of taxation are no different than the tax impact of the income tax. Every tax at every level ends up in the pricing of the product that is eventually purchased by the end consumer.

Therefore, just tax the end consumer at a reasonable rate to FINANCE the government you want to pay for. Then everyone pays tax and at the same rate. That's the way it should be.

Exempt food, housing, and utilities.

[Trust but Verify]

You buy this crap? The woman is clearly off her meds......

[kylaka]

I'm surprised Farah would actually publish this. In addition to the inciteful drivel, anyone eho would describe the current tax as "fair" is a sure candidate for the psych ward.

[Trust but Verify]

Are you for real? Are you and this nutbag author suggesting that this tax bill, which has been passed in both houses and has been publicly disseminated is going to have VAT added to it? This is entirely nonsense.

[ovrtaxt]

You make perfect sense, but the goal here is to keep the sheep in the dark and allow them to think that they aren't being taxed. The gubmint holds more power this deceptive way.

It wouldn't be useful to the control freaks to have such a transparent system, as you suggest and as most freedom loving people prefer. Frustrating.

[Trust but Verify]

He should be embarrassed. It's hard to put into words the utter nonsense of the story. And to think some usually intelligent people are buying it makes me cringe.

[EggsAckley]

you will be taxed on the cost of the shirt which also includes the tax that was paid at each phase. Will the price of the shirt increase – absolutely! So will the cost of living.

Now there's your basic problem: it STARTED OUT as a pair of PANTS, then by the time it got to the store, it turned into a SHIRT!

[Dog Gone]

I'm surprised Farah would actually publish this

I'm not. As far as I can tell, about 80% of WND is utter garbage.

[Jorge]

Where in the tax package is a VAT tax included?

Yes..where is the VAT?...and why hasn't it been mentioned in any of the other numerous articles detailing the tax package?

[Dog Gone]

any of you fools who FAIL to vote third party deserve what you are going to get. And I will mock you openly on this forum

Oh goodie. I can't wait.

[HatSteel]

There's a small part of me that says we could "phase" in national sales tax. But then I remember that I'm talking about politicians remaining honorable. At that point, I wake up from the nightmare.