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EDITORIAL
Ominous trial balloon
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Those who don't pay any income taxes (see above) may soon get a splash of cold water in the face.
White House economic adviser and former Federal Reserve inflation czar Paul Volcker said Tuesday the United States should consider raising taxes to help bring deficits under control, and that we may need to consider a European-style value-added tax.
Mr. Volcker said the value-added tax "was not as toxic an idea" as it has been in the past.
Though he acknowledged that both were still unpopular ideas, he said getting entitlement costs and the 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.
This is what's called a "trial balloon."
A value-added tax is an alternative to a national sales tax -- actually, it's worse, because it's added to each step of the processing of a consumer good, meaning it can end up being a 55 percent tax, or more -- that has been implemented by European countries including France to fund their massive social welfare spending. In France the VAT generates 49 percent of tax revenue.
That means if the United States had a VAT, Americans could expect to be paying twice as much in taxes as they do now, whether or not -- this is the great part -- they still had jobs. For the "lower half" of American earners, who currently pay no income tax, a VAT could mean a large -- and far more regressive -- tax boost.
President Obama is sending out his minions to see how loudly people squawk when he talks about a massive new federal tax -- in complete defiance of his campaign promise that no one earning under $250,000 per year would pay another penny under his "soak-the-rich" regime.
It's unlikely Mr. Obama can win re-election if he saddles this once-prosperous nation with such a monstrosity -- leading some to speculate this is a "stalking horse," a plan so purposely unpopular that some "lesser" evil can later be substituted, leading everyone to breathe a great sigh of relief that "at least we dodged the VAT."
It would be interesting to know Plan B.
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Yeah, cause, if the world hasn't changed any since 1913, going back to 1791 will be even better.
And, I don't know 'bout anyone else here, but does anyone know a country in the world with a BETTER economy than the one we have right here in the good old U.S. of A. circa 2010?
And as far as pulling your head out of somewhere, from what's written here at least, it appears that someone's head is stuck in the past.
I wonder if the "dodo" realized that it would soon be extinct?
Thank God the world hasn't changed since 1913; at least according to some people.
CLEARLY whatever "worked" (snicker) a hundred years ago will "work" again; horses for everyone!
Is it any wonder that republicans are being evolved out of existence? To them, its 1913 again!
LOL
Lawrence....From the FairTax website: The solution we propose involves two actions:
• Passage of legislation that institutes a single-rate FairTax on all final sales of new goods and services. This tax becomes the chief source of revenue for the United States government, replacing all federal income and payroll taxes, yet generating the same revenue. The legislation provides for a tax rebate equal to the consumption tax paid on essential goods and services. The rebate ensures that no American pays tax on the purchase of necessities.
• A constitutional amendment (HJR 16) that repeals the 16th Amendment and makes a federal income tax unconstitutional."
The FairTax has been studied more intensively than any other alternative tax proposal to the tune of over $20 million.
Volcker can say whatever he wants.Not one Democrat in Congress or Obama have proposed a vat tax.Meanwhile Republicans are proposing to raise income taxes on workers making less than fifty thousand dollars a year.