David Kirkpatrick

October 2, 2009

Is a value-added tax coming?

Filed under: Business, Politics — Tags: , , , , — David Kirkpatrick @ 3:40 pm

I sure hope not.

From the link:

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.

2 Comments »

  1. And all their children, as far as I know. ,

    Comment by Maxx51 — October 22, 2009 @ 5:39 am

  2. This suspension set a precedent for succeeding eco- nomic crises; 1819, 1837, 1857, and so forth. ,

    Comment by Miss42 — October 23, 2009 @ 5:00 am


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