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Us Sales Tax (vat) Considered In Congress

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Budget deficits are soaring so the smart thing to do would be to stop wasting money. Instead Once Considered Unthinkable, U.S. Sales Tax Gets Fresh Look.

With budget deficits soaring and President Obama pushing a trillion-dollar-plus expansion of health coverage, some Washington policymakers are taking a fresh look at a money-making idea long considered politically taboo: a national sales tax.

Common around the world, including in Europe, such a tax -- called a value-added tax, or VAT -- has not been seriously considered in the United States. But advocates say few other options can generate the kind of money the nation will need to avert fiscal calamity.

At a White House conference earlier this year on the government's budget problems, a roomful of tax experts pleaded with Treasury Secretary Timothy F. Geithner to consider a VAT. "There is a growing awareness of the need for fundamental tax reform," Sen. Kent Conrad (D-N.D.) said in an interview. "I think a VAT and a high-end income tax have got to be on the table."

A VAT is a tax on the transfer of goods and services that ultimately is borne by the consumer. Highly visible, it would increase the cost of just about everything, from a carton of eggs to a visit with a lawyer. It is also hugely regressive, falling heavily on the poor. But VAT advocates say those negatives could be offset by using the proceeds to pay for health care for every American -- a tangible benefit that would be highly valuable to low-income families.

"Everybody who understands our long-term budget problems understands we're going to need a new source of revenue, and a VAT is an obvious candidate," said Leonard Burman, co-director of the Tax Policy Center, a joint project of the Urban Institute and the Brookings Institution, who testified on Capitol Hill this month about his own VAT plan. "It's common to the rest of the world, and we don't have it."

The federal budget deficit is projected to approach $1.3 trillion next year, the highest ever except for this year, when the deficit is forecast to exceed $1.8 trillion. The Treasury is borrowing 46 cents of every dollar it spends, largely from China and other foreign creditors, who are growing increasingly uneasy about the security of their investments. Unless Congress comes up with some serious cash, expanding the nation's health-care system will only add to the problem.

Obama wants to raise income taxes for high earners and impose new levies on business, but those moves would not generate enough cash to cover the cost of health care, much less balance the budget, and they have not been fully embraced by Congress. Obama's plan to tax greenhouse-gas emissions could raise trillions of dollars, but again, Congress is balking.

Enter the VAT, one of the world's most popular taxes, in use in more than 130 countries. Among industrialized nations, rates range from 5 percent in Japan to 25 percent in Hungary and in parts of Scandinavia. A 21 percent VAT has permitted Ireland to attract investment by lowering its corporate tax rate.

The VAT has advantages: Because producers, wholesalers and retailers are each required to record their transactions and pay a portion of the VAT, the tax is hard to dodge. It punishes spending rather than savings, which the administration hopes to encourage. And the threat of a VAT could pull the country out of recession, some economists argue, by hurrying consumers to the mall before the tax hits.

http://globaleconomicanalysis.blogspot.com...fresh-look.html

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Whatever they'll decide to charge for VAT, it'll in effect work out as an instant national pay cut of n%, and of course, all your savings and assets will be diminished by the same amount too.

Obama is a comprehensive kind of guy methinks.

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Guest sillybear2

Existing local sales taxes are in a upward trajectory too, the state of California is essentially bankrupt.

The realization of all that magic money they thrown at the bankers is plain to see now, that money has no value without the other end of the zero sum game, hard labour, high taxes and lower living standards in order to keep the elites in a position in which they are used to.

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Guest sillybear2
Not such major news. Most states have a sales tax, this would just put it on a national federal basis.

It will be a big issue, some states have no local sales tax, that's one of the ways they attract people and investment into their state. Once you get a national taxation system you destroy tax competition and a monopoly ensues, just like the UK.

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Guest DissipatedYouthIsValuable

This'll get the confidence of the people moving positively again.

Vive la recouvereh!

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Guest มร หล&#3
This'll get the confidence of the people moving positively again.

Vive la recouvereh!

They know not what they do.

(Can't decide if that sounds clever or just Thai style pigeon English)

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Guest มร หล&#3
should it have forgive them Lord in front of it

Wat yuor neam? Wear yo cum form? I tink I rove you 2 mut. Yo by Kohla me?

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Guest DissipatedYouthIsValuable
:lol::lol::lol:

I thought the bit about people rushing to buy before the VAT was introduced, thereby bringing the country out of recession was particularly funny.

******ing idiots.

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Guest sillybear2
I thought the bit about people rushing to buy before the VAT was introduced, thereby bringing the country out of recession was particularly funny.

******ing idiots.

Which is basically what the scrappage scheme is all about "thinking about buying a new car next year? Well buy it now instead!"

Fast forward 12 months ....

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Guest sillybear2
Bar girl speak.

She short change you long time, need steel customers monhey to complete operation.

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Guest มร หล&#3
She short change you long time, need steel customers monhey to complete operation.

Buffawo syck!

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Guest sillybear2
Buffawo syck!

"Mama ill, she say me 'YOU BEST DUAHGTER EVER' my sun"

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Buffawo syck!

:lol::lol::lol:

Really? Have you heard that one used in a bar out there Mr P?

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Guest มร หล&#3
:lol::lol::lol:

Really? Have you heard that one used in a bar out there Mr P?

Bar??? My bloody sister-in-law says it in perfect Surrey English!

It was poorly mind, just fed it some decent chow.

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Guest มร หล&#3
"Mama ill, she say me 'YOU BEST DUAHGTER EVER' my sun"

There's always some tw@t dying of cancer of the eyeballs out here.

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Guest sillybear2
Poor Bruce. Had to go to Udon Thani. Got back from there on Monday. What a dump!

The whole country seems to have less morals than a branch of Northern Rock during 2007.

Edited by sillybear2

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Guest มร หล&#3
The whole country seems to have less morals than a branch of Northern Rock during 2007.

Yes and no. Acutally a very strong society and community, but remember in Buddhism sex is not an evil thing like it is with other religions.

You'd be amazed, even if you don't consider yourself religious, you still live by Christian values. (well before the 3rd bottle of Singha that is).

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