Posted on 05/15/2010 6:03:09 AM PDT by Patriot1259
It is interesting how the left will take a politically popular idea and pervert it into something that will only further destroy a country that is already well down the road to serfdom. The latest example is the Obama administration's repeated statements that it is looking into the possibility of a Value Added Tax (VAT). This comes after almost two decades of millions of Americans advocating a "Fair Tax" instead of the current income tax system. Obama's apologists will state that they both are, after all, taxes on consumption. The similarities after that, however, largely evaporate.
The Fair Tax is a system that has been promoted for years by individuals who support limited government and greater voter participation in the political process. Today, less than half of all Americans pay federal income taxes. This reality has been like a continuous cold shower on a population that should be on fire because government is out of control. A "Fair Tax" would be a national sales tax on every good and service. Everyone would know that cost of government at every transaction. Millions of Americans who have been sleeping politically, would come to an abrupt awakening. Centerpiece in this strategy would be that this tax would replace the very destructive and archaic income tax system, which wages a direct war on wealth and job creation.
(Excerpt) Read more at thecypresstimes.com ...
This is the part the liberals will not tell you....they will enact the VAT and keep the income tax as well.
Sure, the income tax would go away for the first few years of the VAT, but once deficits continue, the call will be made to tax the rich.
The “Fair Tax” is NOT a VAT!!!!
I wish people would get their facts straight. The “Fair Tax” would replace the income tax and and a VAT places a tax on each level of production, the “fair tax” doesn’t.
Is the only difference between the Fair Tax and the VAT tax tha fact that the Fair Tax would replace our income tax, while the VAT would supplement it?
Quite true. CommieCrates are incapable of grasping this simple reality that you have so accurately pointed out.
But it does raise large sums for the government to fritter away, because it is such an oppressive tax. I lived in Europe and saw the effect of VAT. It literally changes the fabric of society.
That is the major difference, but there are others:
1. VAT is a hidden tax — FairTax must be shown on sales receipt.
2. VAT applies different rates to different products — depending on the political clout of the associated special interest/lobbying group.
3. VAT will ensure that the aforementioned special interest/lobbying groups gain even more influence and power in Washington, DC. FairTax, because it is a single rate tax applied across the economy will cause said special interest and lobbying firms to dissolve — they’ll have no ability to affect the tax laws.
There are others, but you get the drift.
There’s where I’m confused. The Fair tax - is it a sales tax or a gross receipts tax. Difference proponants tell me different facts.
Specious argument. Simply require that it be shown separately. It has to be calculated as a separate item at every stage. The 'hidden' thing is an attempt at deception by governments that have VAT. Deception that does deceive the proles! Sales tax is currently separate in the USA because it is required to be.
Make the poor realise that the largesse meted out to them has to come from somewhere. Obozo does not have a stash!
I know I read it in this article which differentiates the VAT from the Fair Tax
FairTax is a National Retail Sales Tax. It is a one-time tax levied on all new goods and services at the point of retail sale, and is paid by the retail customer. Note that businesses will not pay the FairTax on goods and services purchased in the course of ordinary business (i.e., used in the business to create a product or bought for resale).
The FairTax rate is currently established at 23%, but there are many opponents of FairTax who propagate a lot of mis/disinformation and outright lies about the rate. Without getting into too much detail, to the consumer, the tax will show on his/her receipt form as $.30 for each dollar spent at retail, Having said that, $.30 is 23% of $1.30, and that is where the confusion lies.
The whole debate about “tax exclusive (23%)” and “tax inclusive (30%)” rates came about because the Federal Income Tax is a tax inclusive system. A person in the 15% federal income tax bracket actually has to earn $1.176 to have $1.00 left after taxes; i.e., $.176 is 15% of $1.176.
The subterfuge is intentional, by the way; your government wants you to not figure out what your real tax burden is. And angry populace presents a difficult problem for government poobahs!
Moving on:
FRom Wikipedia: “A gross receipts tax or gross excise tax is a tax on the total gross revenues of a company, regardless of their source. A gross receipts tax is similar to a sales tax, but it is levied on the seller of goods or services rather than the consumer. This is compared to other taxes that are listed as separate line items on billings, are not directly included in the listed price of the item, and are not a factor in markup or profit on company sales. A gross receipts tax has a pyramid effect that increases the actual taxable percentage as it passes through the product or service life-cycle.”
IMHO, the FairTax is superior in every way to all other forms of taxation I have been made aware of.
In fact, if I had it within my power to do so, I’d outlaw (via the US Constitution) EVERY existing form of taxation in the US and impose a country-wide FairTax which would fund all levels of government!
Let us hypothesize that a 30% (tax exclusive) retail sales tax, modeled on the FAirTax, would do the trick. That would add about $.43 to the retail cost of everything we buy. It would be collected by the states and would be shared by the local, county, state and federal governments in some ratio agreed to beforehand.
There! All done! And because FairTax will create staggering economic growth, we all can get on about the business of creating a better place for us and our families to live.
Which is really why we are here in the first place!
Surely you don’t believe that the Obama VAT will be a constant rate across the economy tax and that every sales slip will break the VAT out FRom the item price, do you?
I would make sure that every transaction that I engage in is b to b, and therefore exempt.
The Progressive Political/Media machine is all ready gearing up to push the idea that tax hikes will “fix the debt crisis” when the faux “Debt Reduction Commission” unveils their “fix” later this year. This is just the latest repeat of the old lie.
In 1986 to Reagan, 1991 to Bush 1 and 1993 to Clinton the Progressives in Congress made the same fraudulent promises. Give us these massive tax hikes now and later we will cut the spending to balance the budget.
We gave them the tax hikes and Federal Spending exploded faster then we could pay for it.
The ONLY time we have gotten a balanced budget in the last 40 years is when the post 1994 election Republican Congress took the public relations hits to actually reign in the spending. Contrary to the Progressive mythology, Bill Clinton’s tax hikes did not do that. The last Democrat Congress budget forecast in 1994 forecast $200 billion deficits for the rest of the 1990s.
So this time the response of the American people should be
“Look we have heard this lie before. This time we want the spending cuts in place first, then 4 or 5 years down the road, when you have shown you can be responsible with the people’s purse, then you can come ask us for tax hikes.”
You’d probably get busted for tax evasion.
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