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Bloviating Zeppelin: Read Obama's Lips: MORE NEW TAXES

Bloviating Zeppelin

(in-ep-toc'-ra-cy) - a system of government where the least capable to lead are elected by the least capable of producing, and where the members of society least likely to sustain themselves or succeed, are rewarded with goods and services paid for by the confiscated wealth of a diminishing number of producers.

Thursday, May 28, 2009

Read Obama's Lips: MORE NEW TAXES


From The Washington Post:


With budget deficits soaring and President Obama pushing a trillion-dollar-plus expansion of health coverage, some Washington policymakers are taking a fresh look at a money-making idea long considered politically taboo: a national sales tax.

Common around the world, including in Europe, such a tax -- called a value-added tax, or VAT -- has not been seriously considered in the United States. But advocates say few other options can generate the kind of money the nation will need to avert fiscal calamity.

At a White House conference earlier this year on the government's budget problems, a roomful of tax experts pleaded with Treasury Secretary Timothy F. Geithner to consider a VAT. A recent flurry of books and papers on the subject is attracting genuine, if furtive, interest in Congress. And last month, after wrestling with the White House over the massive deficits projected under Obama's policies, the chairman of the Senate Budget Committee declared that a VAT should be part of the debate.

"There is a growing awareness of the need for fundamental tax reform," Sen. Kent Conrad (D-N.D.) said in an interview. "I think a VAT and a high-end income tax have got to be on the table."

Ladies and gentlemen, readers of this blog, you have got to understand one primary thing: you, me, us, we have all been taken for a ride by Mr Obama.  He has outright lied to ensure his installment into the White House.

Once present, the gloves are off and the primary agenda is to ensure The Chicago Way becomes The Washington Way, along with any number of social experiments embraced -- up to and including actual Socialism.  Some Conservative pundits, writers and radio hosts -- such as Hugh Hewitt -- chastise fellow Conservative callers, readers and bloggers for using the "S" word -- Socialism.  I believe this to be simply too accommodating and "understanding" of the situation and bordering on disingenuous.

Part and parcel of this entire mess is a situation that, in actuality, will work to Mr Obama's benefit.  Started and embraced by the prior Bush Administration by way of TARP I -- a completely wrongheaded action -- the current economic crisis will allow Mr Obama to quite take full advantage of said crisis and, thusly, to institute any number of onerous restrictions, regulations and taxations.

You wish a national tax, ladies and gentlemen?  I do believe your wish may soon be granted.  And the US Mint's presses continue working overtime.

BZ

P.S.

The Heritage Foundation has an excellent article from 2005 entitled "Beware the Value-Added Tax."

America is one of the few nations without a value-added tax (VAT), but there is growing pres sure to impose the levy. In simple terms, a VAT is a type of national sales tax. However, instead of being collected at the cash register, it is imposed on the “value added” at each stage of the production process.

However, many people dislike the VAT. Supporters of limited government oppose the tax because it makes it easier for politicians to expand the size of govern ment. By contrast, some on the left oppose the VAT because of its one redeeming feature—it is a con sumption-based levy and therefore not as easy to use for economically destructive income redistribution.

Even back in 2005, The Heritage Foundation thought:

Although it is a relatively non-destructive way to collect revenue, a VAT would be a serious mistake for the United States. The only condition that would make a VAT acceptable is complete repeal of all income taxes and a constitutional amendment that prohibits Congress from re-imposing taxes on any type of income. But this is not a realistic option, which is why the VAT should be stopped.

The Heritage Foundation believes that a VAT will do the following:

- Expand the cost of government.

- Inadvertently increase income tax rates.

- Slow economic growth and destroy jobs.

What, specifically, is a VAT?

A VAT is levied on the “value added” to goods and services as they pass through each stage of the production process. There are two ways to impose a VAT, and both require businesses of all types to serve as tax collectors. The most common form, the credit-invoice VAT, operates somewhat like a sales tax. As explained by the Congressional Budget Office:

[The credit-invoice VAT] is typically administered by taxing the total value of sales of all businesses, but allowing businesses to claim a credit for taxes paid on their purchases of raw materials, intermediate materials, and capital goods from other businesses.[1]

By imposing a tax on receipts but then allowing a credit for VAT taxes collected at earlier stages of production, the credit-invoice VAT taxes the “value added” by each business. The total tax, regardless of the stage of production at which it was collected, ends up being added to the final sales price.

No matter how many steps there are in the pro duction process, a fixed percent of the final price of the product would represent the value-added tax, just as a retail sales tax is a fixed percent of the final product price. However, unlike a sales tax, the cost of the VAT to consumers would be hidden. Unless politicians took the unlikely step of requiring retailers to state explicitly the portion of the sales price that is due to the VAT, consumers would be unaware of the tax.[2]

12 Comments:

Blogger shoprat said...

I can hear his speech now. "what do you need your own money for? I'll give you everything you need."

Wed May 27, 09:33:00 PM PDT  
Blogger Bloviating Zeppelin said...

And a frightening prospect is it not, Mr Shop?

BZ

Wed May 27, 09:43:00 PM PDT  
Blogger Carlisleboy said...

Can we FINALLY say "I told you so!!" to the Obama Zombies?

Wed May 27, 10:37:00 PM PDT  
Blogger Z said...

This comment has been removed by the author.

Wed May 27, 10:53:00 PM PDT  
Blogger A Jacksonian said...

A VAT on top of the income tax... come on, this is a politician and they have never, ever let any tax go without a grim 'to the death' fight. A VAT is something that makes the cure worse than the disease, and the petty corruption that goes with it is something you only appreciate first hand.

Living across the border from Canada I got to taste shopping there as a 'North American' (ex. 'We're all North Americans, eh?') to 'You're from the States! I can offer you a discount and how much more can I sell you?!?'

Yes from despised Yank to Valued Customer in one, easy, VAT. Why the wonderous change?

Simple.

A VAT makes every shopkeeper a servant of the State to collect taxes and wastes valuable time and they are not paid to do it. Thus that increases the cost of overhead, which is passed on to the customer. A 'Valued Customer' has no overhead, thus gets a price break... locals pay the new 'full' amount. If you can generate enough traffic from outside the country, your workload to the State goes DOWN and your profits go UP.

Thus Canada embarked on supercharging its underground economy, just like in the UK, France, Germany, Sweden.... do you want to buy it 'full price' with taxes or at our 'special reduced rate for foreigners?' Mind you, I was known at the shops in question and so got an earfull about how much people detested the VAT.

There are other ways to do things that don't require that... like tarriffs at the wholesale level. If el Presidente Obama really wanted to reduce the consumption of sugar he would: 1) cut all subsidies on it, 2) open the US to global competition, and 3) put on a 10% tarriff on incoming refined sugar (or raw sugar, or precursors... or all of them). That cuts the federal budget on subsidies (you spend less!!!), the subsidized farmers must compete at wold market + 10% (you get fewer, more efficient farmers), and you gain income from a modest tarriff that in no way brings the cost of sugar up to current levels, thus cutting the price... which means folks will consume more, but you get the lovely income from the tarriff on it...

Mind you, this can't be done with 'free trade' as it stimulates trade and yet uses National Sovereignty on tarriffs to support the Nation.

Needless to say the authoritarian single-party state of Incumbistan wants to dictate your lifestyle to you and make you pay for such dictation via taxation. Remember, every time you hear about 'compliance' for a VAT, it is the code-word for 'unpaid work by shopkeepers for the government doing the work government should do'.

And just like Canada you keep your income tax, too!!

Thu May 28, 05:20:00 AM PDT  
Blogger Rivka said...

Carlisle boy,
We will have to wait to say that until the low income obamaites find themselves penniless from all the taxes they will pay to fund their supposidly 'free' health care. They still won't get it though.

We may have to wait until they realize they are going to die from bad health because they can't get quality care here in the U.S.

Maybe, just maybe they will listen, but hey.. Who knows what kind of deception will be out there in the media. They still may think 'the one' and the leftist marxists are their answer.

Thu May 28, 07:09:00 AM PDT  
Blogger Z said...

New IRS TAX FORM Calculations for 2010:

1. What did you make this year?

2. Send it in.

Shoprat, they sure can't give us our self respect and the feeling you get after an honest day's work, can they. I wonder if they know what either feel like.

BZ? Come see my latest post on TAGGED...you may or may not like it, but give it a go!! (see the end of it!)

Thu May 28, 11:41:00 AM PDT  
Blogger TexasFred said...

All I can tell you, ALL of you, keep your powder dry, and invest in precious metals...

Lead and brass mostly...

Thu May 28, 08:06:00 PM PDT  
Blogger Always On Watch said...

Although I've largely been out of touch the past few weeks (end-of-term school stuff), I did happen to read the VAT article in the WaPo.

All I could think at the time I read the article, "Another tax? Will Americans stand for that?"

Of course, here is the carrot:

The only condition that would make a VAT acceptable is complete repeal of all income taxes and a constitutional amendment that prohibits Congress from re-imposing taxes on any type of income.Let's think back to the Constitutional amendment which provided for a federal income tax. At the time, nobody believed that the rate would ever go over 1%. Well, they thought wrong; the government has never created a tax it didn't like. Furthermore, taxes typically increase in rates, small increment by small increment to the point we have today.

The same would happen to the VAT, too.

Fri May 29, 05:46:00 AM PDT  
Blogger KrisEveland said...

It's ok though, b/c he'll pay our gas and mortgage...right, anyone?

I have serious doubts about his viability as a 2012 candidate.

Fri May 29, 06:49:00 AM PDT  
Anonymous WMD_Maker said...

Kris
"I have serious doubts about his viability as a 2012 candidate."
He wont have to worry about being a candidate he will remove the roght to vote and do away with elections because he knows better. I look for him to try this before 2010 so there wont be any bumps in the way

Fri May 29, 07:05:00 AM PDT  
Blogger David Wyatt said...

WMD, I would not be one bit surprised.

BZ, i appreciate your keeping us informed. Though it is depressing, I appreciate your work, & I appreciate you. God Bless.

Sat May 30, 11:59:00 AM PDT  

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