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We Need a VAT? We Already Have One
Townhall.com ^ | June 7, 2010 | Bruce Bialosky

Posted on 06/07/2010 8:08:27 AM PDT by Kaslin

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I have said for a long time, anyone who believes the rats are good for the economy better think again. The opposite is true
1 posted on 06/07/2010 8:08:27 AM PDT by Kaslin
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To: Kaslin

And here I thought rats were good for ammo sales.


2 posted on 06/07/2010 8:11:44 AM PDT by Paladin2
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To: Kaslin

That bloated Communist Pig of a Government needs to tax less.


3 posted on 06/07/2010 8:13:19 AM PDT by Cheetahcat (Zero the Wright kind of Racist! We are in a state of War with Democrats)
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To: Kaslin

marking for later


4 posted on 06/07/2010 8:15:27 AM PDT by brothers4thID (http://scarlettsays.blogspot.com/)
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To: Cheetahcat
That bloated Communist Pig of a Government needs to tax less.

It needs to govern less. It costs a lot of money to micromanage the things it shouldn't, and at the same time it shirks its Constitutional duties.

5 posted on 06/07/2010 8:18:30 AM PDT by Smokin' Joe (How often God must weep at humans' folly. Stand fast. God knows what He is doing.)
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To: Kaslin
The corporate INCOME tax should be renamed the Corporate PROFIT Tax, because the current name makes it sound so homey, and people should realize that corporations only pay income tax when there is a profit.

It could also be called the "Added To The Price You Have To Pay Tax", but that's a lot longer and harder to remember. "Son of NAFTA" would be another good name for it.

6 posted on 06/07/2010 8:18:41 AM PDT by Bernard (One if by Land, Two if by Sea, Three if by Government)
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To: Kaslin

The tax revenues are lower and the dems think that raising the rates will produce more revenue. That’s how nuts they are. Raising taxes will cause flight/strikes in these conditions because the productive are seeing the scales tipping to reward the looters and moochers. “Wealth” has to be produced before you ‘redistibute’ it.
Might as well send each person a bill for their tax burden rather than the voluntary system we have now.
I chose not to pay the 12% F.E.T. on the trailers we built by simply not building the trailers anymore.
Easy squeezy, Lemon peasey!


7 posted on 06/07/2010 8:20:13 AM PDT by griswold3 (Barack Obama’s First Law of Leadership: “I just work here.”)
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To: Kaslin

The biggest problem with a VAT is it’s hidden. Better to have a visible national sales tax so we know what we are paying, and forget that too unless the constitution is modified regarding the income tax.


8 posted on 06/07/2010 8:21:35 AM PDT by sickoflibs ( "It's not the taxes, the redistribution is the federal spending=tax delayed")
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To: Kaslin
Granted, the corporate income tax acts as a VAT, in that the costs are passed through to customers. However, the corporate income tax does not raise anywhere near the revenue that a true VAT would. This is because corporate income tax is based on net profits, whereas VAT is based on gross product sold.

As a simple example, consider a corporation that has $10 billion in revenue, but net income of zero and taxable income of zero. Corporate tax revenue under the existing system would be zero, but the VAT at a 20% rate would produce tax revenue of $2 billion, regardless of whether the corporation made or lost money.

VAT is a convenient way for politicians to suck ever-increasing amounts out of the economy into their coffers, without having to be concerned about corporate profits at all. At present, in times of corporate losses, politicians suffer along with the rest of us. With a true VAT, they get theirs, regardless of how much everyone else struggles.

9 posted on 06/07/2010 8:22:10 AM PDT by Emile ("Facts do not cease to exist because they are ignored." -- A. Huxley)
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To: Bernard

I agree with your statement about corp income tax. It drives me crazy that they call it a Value Added Tax, where is this VALUE you claim to add to it. I wish they would just call it a National Sales Tax. They won’t because people are too stupid to realize that they are being taxed to death.


10 posted on 06/07/2010 8:22:16 AM PDT by Cyclone59 (I ROCK, Guitar Hero said so........)
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To: Kaslin
Zero, Reid, Pelosi with their vat!


11 posted on 06/07/2010 8:22:35 AM PDT by WVKayaker ( Ridicule is the best test of truth. - Philip Dormer Shanhope, Lord Chesterfield)
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To: Emile
With a true VAT, they get theirs.

Unless of course, companies stop producing and selling product, as griswold suggests in #7.

12 posted on 06/07/2010 8:24:35 AM PDT by Emile ("Facts do not cease to exist because they are ignored." -- A. Huxley)
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To: Kaslin
When Obama care passed a VAT was inevitable. No nation with nationalized medical care (Canada, Britain, etc.) can operate without one ... certainly no exception for the U.S.. I stated as much earlier this year, stating that if Obama care passes this time next year (early 2011) a VAT bill will in front of Congress and it will pass. there's no alternative.
13 posted on 06/07/2010 8:26:15 AM PDT by BluH2o
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To: Kaslin

And here is what your price tag will likely look like..
You select a shirt and the price is 50.00 USD. You go to the counter and the sales person says that will be 50.00 USD. You ask what is the tax? “ Oh it is already in the price”. What you may not know is that tax is 25.5%. That is the sales tax in Iceland. Last year it was 24.5%.
In Iceland, when you go to reclaim your VAT tax at the airport ( and you must have a special form filled out by the shop where the item was purchased and not all shops do this) you only get 15% back.
Oh and did I mention that there are annual income taxes in Iceland? Not sure what that amount is on your income but you can bet it is high.
Now, what kind of homes do they have? Some are quite nice, some quite small. What kind of appliances do they have? Not the same sizes we have oh and costs? Let’s say many don’t have tumble dryers...can we say skinny fridges or what we would consider a bar fridge?
Be careful what you wish for you just might get it.


14 posted on 06/07/2010 8:31:28 AM PDT by celtic gal
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To: Smokin' Joe

Yup, yup, yup. The only thing the VAT would do is give liberals and Rhino’s more money to spend. It won’t help the deficit one bit.

If the American people can put the right people in office that actually care about this country of ours, the people can turn this thing around. The government will do nothing as long as they have access to our money. We need to cut the money from their hands.


15 posted on 06/07/2010 8:33:34 AM PDT by RC2
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To: Kaslin

We don’t need additional taxes. We need Congress to cut spending.


16 posted on 06/07/2010 8:34:00 AM PDT by MEGoody (Ye shall know the truth, and the truth shall make you free.)
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To: celtic gal

I forgot one thing...for foreigners in Iceland, when you are going to get a refund for a purchase on one sales ticket, and if it is 5000ISK or more you must go to their customs to show the items first or the VAT window will not honor your claim...5000ISK is about 38.80 on today’s exchange rates.


17 posted on 06/07/2010 8:35:16 AM PDT by celtic gal
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To: Kaslin

I dont know how they got the label in the first place...they have always been big tax and spend government


18 posted on 06/07/2010 8:36:38 AM PDT by dalebert
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To: Kaslin

AARP os already singing the virtues of a VAT tax because Europe is doing it, why not the US!

Europe is jumping off a cliff. Why not the US!


19 posted on 06/07/2010 8:38:37 AM PDT by Ruy Dias de Bivar ( Viva los SB 1070)
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To: Kaslin
The left's problem is twofold. One, they are so inured to class warfare that they do not see that this is not 1906 with Robber Barons in control of everything. They do not see a corporation, they see J.P. Morgan. They don't allow themselves to know that stock in corps. fund union pensions, workers 401Ks,seniors IRAs.They see profit as allowing the rich to throw more formal parties for dogs in Newport.

The Left does not recognize that, as the article says, corp taxes are a VAT, paid ultimately by consumers paying higher prices and workers losing jobs ad multi nationals flee America. Of course they hope for the worldwide socialist revival, and they see their salvation not in red shirted mobs, but in the finely tailored Davos Men who see a marriage of Govt, Corp, and Labor erasing boundaries and creating a vast nanny state where decisions are made for our good by bureaucrats and managers in the comfort of their well appointed offices in Brussels, Dvos, London and NYC.(and maybe Shanghai)

20 posted on 06/07/2010 8:51:10 AM PDT by xkaydet65 (tials being lifted)
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