We're broke ... time for a new tax

CNNMoney.com web site ^ | October 2, 2009 | Jeanne Sahadi

[RayChuang88]

NEW YORK (CNNMoney.com) -- President Obama has been steadfast in his pledge that he won't raise taxes on those making less than $250,000.

But that doesn't mean only high-income households will be subject to higher taxes.

An increasing number of influential Democrats and fiscal policy experts have signaled publicly that lawmakers will have to get a handle on the deficit sooner rather than later. And they recommend policymakers seriously consider the creation of adding a value-added tax (VAT) on top of the federal income tax.

That could mean more money out of everyone's pockets when buying virtually anything - sweaters, school books, furniture, pottery classes, dinners out.

[RayChuang88]

This is a TERRIBLE idea in my opinion--it creates even more bureaucratic problems trying to collect on taxes.

A VASTLY better solution is the FairTax proposal (H.R. 25/S. 296). By eliminating the excessively burdensome income tax and replacing it with a 23% national sales tax on new production goods and services, we save Americans at least US$350 billion per year in compliance costs and because we no longer impose taxes on earning money, it means millions of manufacturing and service sector jobs return to the USA under vastly better tax conditions, creating an economic boom so big it would make the growth from 1994 to 2006 seem like a minor event in comparison.

[Made In The USA]

Perhaps a fair or flat tax system; but in my opinion the first problem to address is spending itself. The Dems & GOP need a 12 step program to kick this uncontrollable spending habit.

[RayChuang88]

Actually, under FairTax, we'll know exactly how much money the government generates through the 23% national sales tax receipts. That will immediately tell the government how much money they have on hand for operating government agencies, and that will go a long way in determining how much our governments can actually spend.

[Erik Latranyi]

The VAT is a typical liberal ploy.....tax the value added to products at the manufacturing level so the consumer does not see it directly.

Consumers, educated in our public system, will get angry with manufacturers for raising prices.

If you thought manufacturing was fleeing this country, enact this tax and watch them shut down.

[television is just wrong]

government has an addiction, spending OUR money.

[concerned about politics]

That could mean more money out of everyone's pockets when buying virtually anything

What money? We're about to hit 10% unemployment, and that's with government spin! Imagine how bad it really is. On top of that, everything has already gone up 30% since Oboma took office.
If the price of everything goes up even farther because of this tax, manufacturing is going to get hit worse. They'll have to lay off more employees because the demand for goods will not be there.

sweaters

Shades of Jimmy Carter, only 10 times worse.

In my opinion, Oboma is going to finish the job his Muslim brothers failed to do on 9/11.

[snoringbear]

“The VAT is a typical liberal ploy.....tax the value added to products at the manufacturing level so the consumer does not see it directly.

Yep, this is how it’s done in Europe. And, not only is this tax added in at the manufacturing level, it’s added in at virtually every major process point in the entire supply chain - starting from order entry to point of retail sale. So, this VAT will be added in and compounded several times. All invisible to the consumer of course. Neat little trick, huh?

[concerned about politics]

A VASTLY better solution is the FairTax proposal (H.R. 25/S. 296).

It'll never happen. The politicians would lose their power to control us through our wallets. They'll never agree to lose their power. They see themselves as Gods among men.
A fair tax would be an excellent idea, but this would give too much power to the people in their eyes.

[Caipirabob]

A major dismantling of the US government would result in a massive reduction of expenditures, and would be so much cleaner than a bloody revolution, which is what will happen if enough people’s lifestyles are impacted by continuing government corruption.

[concerned about politics]

VAT will be added in and compounded several times. All invisible to the consumer of course.

Now that the dinosaur media doesn't control 100% of our communications, people will know why the price of goods and services has gone up. I'm sure the new media will make it a point to educate them.
With a tax like this, the cost of social programs will also go sky high, because someone has to pay the democrats bills for them. Their bills go up, the more money the government will have to take from us. That means higher taxes, because the democrat base will still want to feed. Some one will have to pay for their increased expenses, too.

[Sender]

And that gloomy scenario is not considering the next drop of the reaper’s hammer, carbon cap and tax...

[Mouton]

“and would be so much cleaner than a bloody revolution, which is what will happen if enough people’s lifestyles are impacted by continuing government corruption.”

With the government hell bent on raming this health insurance (nothing to do with care) fiasco down our throats, with the Cap and Tax coming, and the specter of a VAT in the wings, I suggested to my wife last night the revolution is less than a year away. She said she used to think I was looney but now she says I agree with you.

Vince

[The Sons of Liberty]

consider the creation of adding a value-added tax (VAT) on top of the federal income tax.

A VAT is an awful idea. One needs only to look at Europe to see how it strangles an economy.

[silverleaf]

VAT is a tax on consumption. So, when your economy teeters on the edge of slipping from recession into depression, when 10% minimum are unemployed and likely to stay so or grow, discouraging people from buying goods and services is almost guaranteed to tip it.

What I like about this idea is that
a) I can live and consume very little, most of what I want or need I already have
b) The results of this should finally reveal the utter bankruptcy of democrat economic thinking

[concerned about politics]

What I like about this idea is that
a) I can live and consume very little, most of what I want or need I already have

Same here. Imagine whats going to happen inside the huge liberal cities. All they have to eat there is cement and sewer rats.

[Willie Green]

A fair tax would be an excellent idea, but this would give too much power to the people in their eyes.

The "Fair Tax" is an abomination, intended to sidetrack and derail any true tax reform.

[alrea]

Government activity = cost that replaces jobs.

[randita]

"But Paul Volcker, the former chairman of the Federal Reserve who heads President Obama's tax reform panel, is advocating a little advance planning.

When it comes to getting control of the country's debt burden, "I think if we can't do it on the cost side, we've got to go on the revenue side. And it's too early to do it, but it's not too early to begin wondering," Volcker said Wednesday in an televised interview with PBS' Charlie Rose. "You've got talk about some tax that hits consumption," said Volcker. "Value-added is one."

I'm disappointed to see Volcker advocating this. I was thinking he was one of only a few grown ups in D.C. nowadays.

[devere]

The best idea is cutting government spending drastically.
If that won’t happen, a VAT tax is preferable to hyperinflation.

[Willie Green]

a) I can live and consume very little, most of what I want or need I already have

FedGov has been taxing my income all my life.
Despite that, I diligently lived within my means and managed to scrimp and save a modest little "nest egg".
Now that I can finally afford to consume what I want, these polidiot frauds and swindlers want to change the rules and clobber me with a 30% Sales Tax.