The Democrats spent gabillions of dollars to regain Congress, and then this happens?
Washington think tank demigods are now seriously considering a national sales tax - a proposal that has otherwise had only fringe support in recent years.
Their proposal for a value-added tax (possibly as high as 25%) would be a regressive tax: It would hit the poor harder.
Countless commenters here have pointed out that all successful modern nations have relied primarily on a progressive tax structure. This is one of few traits these nations have in common. Under a progressive tax, the rich pay more, government services stay afloat, and the economy hums along. Not so under a value-added tax.
I wonder if the punditocracy won't be satisfied until there's not only a national sales tax but everyone pays the same amount in income tax (which defeats the whole purpose of an income tax).
The Obama administration seems to oppose a national sales tax, but congressional pressure mounts.
If the government wants to raise revenue, let's start by taking back the bailouts it gave to big banks and insurers. Let's also tax the major corporations that have completely avoided paying any taxes since 1998. Congress is recoiling at any sensible tax reform by the President, so Congress has made itself part of the problem.
I think we're almost at the point where we need a constitutional amendment to require federal taxes to be progressive.
(Source: http://www.washingtonpost.com/wp-dyn/content/article/2009/05/26/AR2009052602909_pf.html)
Wednesday, May 27, 2009
Congress to hand FairTax cult a victory?
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VAT isn't anything like the Fair Tax Act. Not even close. It's what Europeans pay for things like socialized health care. You didn't think that was really "free," did you?
ReplyDeleteYou didn't really think Bush's tax cuts for millionaires and corporations were free, did you?
ReplyDeleteWhat's that have to do with anything? Obama's already letting those cuts expire, in addition to new taxes.
ReplyDeleteObama's letting Bush's tax cuts for corporations expire???
ReplyDeleteThat might be a damn good reason to reelect Obama!!!
Why do you want to raise taxes for employers? Do you like double-digit unemployment? If you've no plans to get a job anyway, I guess it doesn't matter. You want Free Stuff (TM) from the government, but you're completely unwilling to anything for it. Hence your opposition to a national sales tax to pay for health care.
ReplyDeleteI oppose VAT too, but I pay income taxes. At least the national sales tax would make freeloaders pay something.
Considering we've had double-digit unemployment here for years now (thanks to this "new economy" bullshit), I really don't grasp your point.
ReplyDelete"Here" being Bellevue?
ReplyDeleteWhy don't you move? My county, which is 20 minutes away from yours, has enjoyed relatively low unemployment until this year. It's still lower than other parts of Ohio. (Local taxes are also lower.)
You can't just sit there and expect someone to offer you a high-paying job with no effort on your part.