Liberty MavenReady to pay a VAT along with your income (and other) taxes?
October 3rd, 2009 8:21 pm | by Mike Miller | Published in Big Government, Liberty, Politics, Taxes, national debt | 0
It wasn’t that long ago that it was considered unthinkable that our government, with all its confiscatory taxes at various levels (local, state, federal) would also impose a national sales taxes on all goods, but that’s exactly what’s being proposed at the highest levels. They are desperate. Get ready to pay more.
NEW YORK (CNNMoney.com) — President Obama has been steadfast in his pledge that he won’t raise taxes on those making less than $250,000. But that doesn’t mean only high-income households will be subject to higher taxes.
An increasing number of influential Democrats and fiscal-policy experts have signaled that lawmakers will have to get a handle on the deficit. And they recommend seriously considering the creation of a value-added tax (VAT) on top of the federal income tax.
That could mean more money out of everyone’s pockets when buying virtually anything — sweaters, school books, furniture, pottery classes, dinners out.
A VAT is tax on consumption similar to a national sales tax. But it’s not just paid at the cash register. It’s levied at every stage of production. So all businesses involved in making a product or performing a service would pay a VAT. And then the end-user — such as the retail customer — ponies up as well.
