Democrats Pushing a Federal Sales Tax?

Democrats Pushing a Federal Sales Tax?
by Jeff Davis
Most sane politicians realize that you shouldn’t raise taxes during economic bad times. Unfortunately the current crop of politicians running things aren’t sane. Nancy Pelosi and Barack Obama are far Right lunatics, who don’t care about ordinary Americans. They probably don’t understand or simply don’t care that our economy is 70 percent driven by consumer spending, which means the government should leave the consumers with some money in their pockets rather than endlessly increase taxes.
A Reuters article reports that ” ‘The United States should consider raising taxes to help bring deficits under control and may need to consider a European-style value-added tax,’ White House adviser Paul Volcker said on Tuesday. Volcker, answering a question from the audience at a New York Historical Society event, said the value-added tax ‘was not as toxic an idea’ as it has been in the past and also said a carbon or other energy-related tax may become necessary.
Though he acknowledged that both were still unpopular ideas, he said getting entitlement costs and the U.S. budget deficit under control may require such moves. ‘If at the end of the day we need to raise taxes, we should raise taxes,’ he said.”
VAT is short for Value Added Tax, and it is popular among European style socialist welfare states. It is a nationwide sales tax, on some items as high as 20 percent, that is charged on all levels, including raw materials for manufacturing, wholesale, retail, you name it. It is also charged on imported goods at the point of entry, in addition to customs and excise. Indeed, one of the insidious things about VAT is that it is charge over and above, and in addition to other taxes such as sales tax.
By the time a product or item reaches the supermarket or department store shelf and is bought by a European consumer, the cost has been inflated by VAT at four or five points along the way. The result is that a pint of beer in a pub in Ireland now costs something like four euros, of which about fifty cents is for the brewer and the pub owner and the rest is VAT and excise tax. Gasoline or petrol in Europe is usually sold by the liter and is roughly 75 percent tax.
The result of charging VAT in all stages of a product’s journey between manufacturer or importer and the consumer is crushing. Americans always come back from the socialist countries of Europe such as Britain, Sweden, and Germany stunned at how incredibly expensive everything is when translated into dollars.
The burden of VAT on a country which now has a real unemployment of 20%, and where many people are losing their homes to foreclosure, with no relief in sight, would be nothing short of catastrophic and would probably succeed in achieving the Democrats’ goal of destroying the small business part of the private sector economy.
The Democrats are aware of the effect VAT would have on ordinary White Americans. They just don’t care. Obamacare has to be paid for somehow, doesn’t it?

Leave a Reply

Your email address will not be published.