Obama Admin. Mulling National Sales Tax: 'Value Added Tax' Has People Screaming To Heck With 'Vat'

WCBS-TV ^ | April 7, 2010 | Marcia Kramer

[2ndDivisionVet]

A taxing development surfaced on Wednesday.

White House economic advisor Paul Volcker is calling for a new national sales tax -- a value added tax or "vat" -- to help close the deficit.

But as CBS 2 HD found out area residents are saying "vat chance."

Talk about starting a tax revolt. Volcker's call for a new national sales tax -- on top of the state and local sales taxes we pay now -- got a loud Bronx cheer from just about everyone.

"That's crazy. That really is crazy. Why would need any more taxes than we already have?" said Kathy Merritt of Watchung, N.J.

"It's a bad idea. New Yorkers are struggling as it is already. We don't need that. We need incentives, breaks, jobs," East New York's Lee Santiago said.

"They're trying to make those of us who have a few bucks poor so everyone will be poor and everyone will be the same," added Charlotte Wein of Midtown.

Here's what the former mayor of Yonkers said when CBS 2 HD into him on the street:

"The Obama administration continues to be extremely out of touch with mainstream America. We're over-taxed so it's just a continuation of his far left, extreme left, agenda and I think it's a disaster for New York and actually the rest of the country, too," John Spencer said.

The new so-called value added tax would come on top of state and local taxes. Economists say the tax would also be imposed on manufacturers and producers.

"You don't need a PhD in economics to figure out that what the producer is going to do is pass this along to the customer," said Ken Goldstein of The Conference Board.

So if the vat is 10 percent, that sweater you pay $31.50 for today would have and additional:

*50 cents in taxes added on by the yarn supplier

*$1 in taxes added on by the manufacturer

*50 cents added on by the wholesaler

*$1.50 added on by the retailer

Now the sweater costs $35 plus state and local sales taxes, which is 8.75 percent in New York City.

One thing that may keep the Obama administration from imposing the tax this year is that every member of Congress is up for election come November. But next year, all bets are off.

Jose Barro, an economist for the Manhattan Institute, told CBS 2 HD that the vat might work if the government agreed to reduce personal income and corporate taxes at the same time.

[Cheetahcat]

Do it then cap and trade see how far they can push?

[MamaDearest]

If enacted, this will absolutely kill businesses (with even more massive layoffs) and spending by most everyone will come to a screeching halt. Predictions are for $4.00 a gallon gas by summertime. Combine that with the VAT, amnesty, cap and trade (extremely higher utility bills) and people will be so on-the-edge. or pushed over it.

[Hostage]

Keep in mind that the National Retail Sales Tax (NRST) component of the FairTax legislation (HR 25) is a RETAIL only sales tax and is not a VAT.

The FairTax abolishes the IRS tax code (every federal tax, income, cap gains, business profits, everything) in toto and requires repeal of the 16th Amendment within 7 years.

Again the FairTax ‘removes’ all taxes that accumulate business-to-business (B2B) in the production and supply chains and then ‘replaces’ them at the ***retail end*** with an NRST.

So the FairTax is not and cannot ever be a VAT. Keep that in mind as we move forward to repeal the 16th Amendment, we will need the FairTax to fund government.

This will become a larger issue as peoople gradually learn that it is the 16th Amendment by which the courts will reluctantly uphold Obamacare, hence we need to repeal it.

As this issue gets broadcast, do not allow the Left to blur and confuse the distinction between a VAT and the FairTax.

More info that the FAIRTAX IS NOT A VAT is found here (6th caret item from bottom):

http://www.fairtax.org/site/PageServer?pagename=about_faq_answers

[Danae]

Exactly! Weren’t we told that the Obamanation bills were going to reduce federal spending??? Riiiiight. Is that the Brooklyn bridge I see up for sale?

[bilhosty]

We do need new taxes but we dont need a vat or a sales tax. wha twe need is a tax on the people who got us into this mess.We need taxes on news print. FcCC licenses and network agreements with affiliates should be taxed as property. Taxes also on legal profits by lawyers. Taxes on Berkenstocks, tied dyed shirts. Also taxes on entertainement royalties and every other tax we can think of on the people who gave us this mess.

[Jeff Chandler]

Predictions are for $4.00 a gallon gas by summertime.

I hadn't heard that. Looks like I picked a very good time to start working from home.

[Paleo Conservative]

I’m sure DemocRAT congressmen will want to vote on this in the time left before the midterm elecitons.

[EGPWS]

http://finance.yahoo.com/news/Nearly-half-of-US-households-apf-1105567323.html?x=0&.v=1

This will give you all the warm and fuzzy’s.....

[DuncanWaring]

...if the government agreed to reduce personal income and corporate taxes at the same time.

Of course they'll agree to that.

"Cross my heart and hope to die, stick a needle in my eye"

Until the time comes to actually reduce the other taxes.

"Oops. So sorry. We really meant to. But, economic circumstances are so dire we just can't afford to right now. We'll re-consider next year."

[RedMDer]

Throw them out! Then, Impeach the Punk!

[Sunshine Sister]

Obama must drink malt liquor huh?

[MamaDearest]

I hadn't heard that. Looks like I picked a very good time to start working from home.

Here you go, from a link I saw this AM:

Santelli - $4 Gas, $150 oil coming this summer

Snip: And with this flight from equities to commodities, Santelli explained it could and will cause an upward adjustment in energy prices.

"We have the cyclical side - we're going to have $4 gas this summer probably anyway," Santelli explained. "It's a great trade. Maria. You know, we've been to $150 before and I don't see why it couldn't happen again."

[Jeff Chandler]

I’m sure we’ll get the hourly news stories about the price of gasoline we get during Republican presidencies.

[GreyFriar]

But don’t you see, the tax is being paid by all those rich manufacturers, it is not being directly levied on the individual. Now if those greedy capitalist manufactures, pass on the tax to the consumer it is NOT Obama’s fault!

(Just trying to be ahead of the MSM in their justification of why the VAT won’t violate Obama’s ‘pledge’ not to raise taxes on those earning less than $250K or was it only $200K per year)

[annieokie]

YOU GOT THAT ABSOLUTELY RIGHT. That is exactly what he wants.

[Presbyterian Reporter]

You meant to say Night Train or Thunderbird, right?? Possibly MD 20/20???

---

Yeah. You are correct. My days of knowing such specifics are long past.

Thanks for keeping me honest!!!!

[Dr. Bogus Pachysandra]

Is Ripple still available?

[Drill Thrawl]

Bingo. You have broken the code. God help us all.

[tobyhill]

Commie Obami won't do it before the 2010 elections and will call the idea ridiculous but right after the elections he'll try to push it through and the MSM will endorse it full force.

[MamaDearest]

I’m sure we’ll get the hourly news stories about the price of gasoline we get during Republican presidencies.

Precisely the reason we've almost (at our house) entirely quit watching TV news. Journalism is apparently completely dead. When I watch opinion based shows, I expect that, but not from those who interject their personal idealism into world, national and local news.

Am I alone in wondering why US newscasters report little if anything about foreign countries? They've gravitated instead to entertainment industry gossip and dumbed down their "alleged" reporting. A 30 second video snippet is the most we can expect these days from those who have supposedly done their homework on world matters.