Value-added tax is seriously being considered by the Obama Administration as a means of scamming the American public out of money to fund health care and line its pockets. Obama is coming through the back door because he has been unsuccessful in getting health care reform the way he originally wanted it. Don't let any one tell you it is a tax only on the rich...it isn't. Below is a clip from The Washington Post describing the process:
'A VAT is a tax on the transfer of goods and services that ultimately is borne by the consumer. Highly visible, it would increase the cost of just about everything, from a carton of eggs to a visit with a lawyer. It is also hugely regressive, falling heavily on the poor. But VAT advocates say those negatives could be offset by using the proceeds to pay for health care for every American -- a tangible benefit that would be highly valuable to low-income families.
Liberals dispute that notion. "You could pay for it regressively and have people at the bottom come out better off -- maybe. Or you could pay for it progressively and they'd come out a lot better off," said Bob McIntyre, director of the nonprofit Citizens for Tax Justice, which has a health financing plan that targets corporations and the rich.'
They can set the percentage of VAT wherever and whenever they want. This will only hurt the economy as buyers will stop buying the products that keep us employed, putting more people out of work.
A VAT, like most taxes, distorts what would have happened without it. Because the price for someone rises, the quantity of goods traded decreases. Correspondingly, some people are worse off by more than the government is made better off by tax income . That is, more is lost due to supply and demand shifts than is gained in tax. This is known as a deadweight loss. The income lost by the economy is greater than the government's income; the tax is inefficient.
Once again, it's time to vehemently protest this slight-of-hand move by