Posted on 04/27/2010 7:38:33 AM PDT by chuck_the_tv_out
I studied Economics at one of the most prestigious universities in the world. When an economist reads 'VAT', they don't think "a value-added tax", as you mere workers/taxpayers are meant to think, but rather an economist sees "a Tax on the Value Added".
It should enter the public debate that "Value Added" is a business term; an economics term that means GDP, or Gross Domestic Product. That is, the wealth creation of the United States of America. The "Value Added" of any organization is equal to the Outputs minus the Inputs. It is the fundamental wealth capacity of that organization.
It is fundamentally dishonest to give GDP tax the acronym "VAT", of course, but such dishonesty seems to be at the heart of modern government!
There is nothing about VAT that adds value. The only value-adding is done by the backs and minds of the American people. A tax (by the way, the etymology of the word tax is a simple derivation of "takes") on GDP simply guarantees that the the GDP of the country, and thus its core prosperity, will go down.
Government coffers will increase, that is for sure, but the size of U.S. GDP decrease, relative to where it would be without such a tax.
Fundamentally, the system of taxes and benefits is nothing but a carrot and stick operation. They give "benefits" for what they want more of and tax what they want less of.
Now, the group of people with "family friends" who bombed the Pentagon, and who attend "churches" that espouse the belief "G-- D--- America", plan to tax America's GDP.
(Excerpt) Read more at christianhusband.net ...
Value Added Taxes only help Huge Mega Corps.
Take for instance some Agribusiness Giant like Con Agra. They Own pretty much every link in the chain from field to Grocery Store, you really think they won’t be using this to it’s fullest advantage as a tool to limit their competition?
They would have to be sickling stuipid NOT to. They can manipulate the prices from it from field all the way to store so that the “value” in each link of the chain is as low as possible.
Another shining example of how the libs fail to think through the consequences of their innane actions and thought.
Joe T Farmer, Bob C Canning Corportation, and Fred D Grocery Store are going to take a huge hit over the VAT.
Again another law by the liberals that is “intended” to punish those evil big bad wolf companies and mega corps. Another tax that will end up killing off the competition for them.
This is why I despise Liberals so damned much.
I lived in Britain for 4 years, they have a VAT. I once argued with my economics professor that it was this fact that sapped away their potential GDP and he dismissed my comments.
An institutionalized professor who never worked in the private sector much less experienced the sting of a VAT.
I probably owe the government for not paying someone to brush my hair and teeth each morning....
We are all criminals in this government state. And we all break many laws each day, no wonder they want us to ignore more law breaking by non-citizens who are here illegally.
Everyone is correct. VAT is NOT a national sales tax, which even our dense media doesn’t understand.
In fact, it is another Sarbanes-Oxley type accounting disaster waiting to happen. Just figuring out the accounting aspects will be brutal: deadweight gain for accountants and lawyers.
But, if you are great at what you do, the government punishes you with a value added tax. It is a tax on productivity.
And wait for the exemptions! This where it will get really twisted. Prediction: minority firms and unions controlled businesses will be exempted.
Sooo,
if manufacturers see everything in the process being taxed, hmmm outsource everything to China. Jus’ bring it here!
Bingo! Way to kill the remaining manufacturing and services here!
Another “Brillllliant” idea from moroooons!
A good prediction on the exemptions!
Exactly right. Vertical monopolies like that will form and avoid the tax.
Caterpillar for instance will own iron mines, smelters, forgers, fabricators, electronics supply companies, assembly plants, and retail sales outlets. They will pay only on the final sale, because nothing is sold in the stages of production.
Also, because a VAT is a tax on domestic product (i.e. wealth produced), every producer who pays a VAT on their product will have a lower income. A lower income means income tax revenue will decrease.
Exactly what is gained (other than complete government control of the economy of course)?
Exactly, VATs kill the small busineses and make way for companies like the fictional “OCP” Omni Consumer Products.
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