Kansas Republican: VAT Tax Would Cripple U.S. Recovery

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hiiiiiiiii good articles to u.s news and good bissness and idea
That's because McCain genuinely has separate opinions from Bush on many topics, the strategist tells U.S. News. He adds that, "It happens to be the best thing to do politically this year" because Bush is so unpopular and McCain needs to show he is his old main.

ponting of MT 5:15PM June 19, 2010

Probably the only thing we need to know about the VAT is that it is generally disliked in countries that have it. In this country--what with federal income taxes, state income taxes, sales taxes, property taxes--implementing a VAT would a bit much. In states with no state income taxes, the VAT could be more easily absorbed, but those states are few in number.
So, any talk about the VAT really ought to begin with what each person's total tax liability is before the VAT and what it would be after. That way, we all start knowing what our personal tax burden will look like.
What, though, about PayGo? Pay for all undertakings up front, not disguised in overall federal liabilities, ever increasing and never ending? My first candidate for PayGo is our total expenditure as a nation on the combination of national defense, homeland security, nation building, and foreign aid designed to gain the cooperation of other countries. Contrary to popular belief, very close to 60% of federal expenditures annually end up in that hopper, much of it disguised in categories other than "Defense." As a debtor nation of some notoriety nowadays, we can't afford that. With PayGo, we'd not want to, and all talk of a VAT would soon dissipate like yesterday's weather.
Some would say, no, it's entitlements spending that's causing our ever deeper indebtedness. True, it accounts for a lot, but given a rewards system in the U.S. that rewards only achievement, not just hard work at whatever level, social safety net programs like Medicare, Social Security, etc. are necessary. Look to the Middle Ages and Victorian England for two spectacular examples of what happens when cheap labor is prized and no safety net exists. Once you get into the ugly that was then, you'll not want it on your watch, lest the gates of Heaven close on you. PayGo before such entitlements were voted into effect or into expansion would no doubt have been a factor in limiting them. But, so too, PayGo would've had a remarkable influence on changing the nature of rewards in the private sector. Just think about that.
Any talk about a VAT, in other words, needs to occur with everything else presently the case in the United States considered. Instituting PayGo the minute the next fiscal year's budget is being thought about could have a wondrously clarifying effect in the minds of those now careless in how they think about "necessary" and "unnecessary." It is my guess that once we see how almost 60% of our annual budget is being deployed, we'll repent of past sins--like thinking the projection of American power around the world produces benefits in excess of expenditures.

Ron W. Smith of UT 6:19PM June 01, 2010

Somebody has to pay the expenses of government. The value-added tax seems to work well in Scandinavia and much of Europe. 24% Norwegian tax does hurt a little, but not as much as their taxes on gasoline, home transfers, and new car taxes. In Book 4 the free e-book series "IN Search of Utopia" (http://andgulliverreturns.info) a Swedish study was discussed which indicated that some are around 485 is the maximum tax that people will generally pay. The Scandinavian countries are at about that level. Of course they have strong social welfare systems. America's taxes on gasoline are so low compared with Europe's. The total taxes we pay, according to a study released this week, is under 10% of our income. This is definitely too low if we're going to have Medicare, Social Security, subsidized housing, a huge military experience, food stamps, FREE education. and the many other benefits we have grown to expect. To call the tax regressive is appropriate only under certain circumstances and criteria. What really seems to be regressive is our national debt which is an anchor on our economy and on our individual buying power. We can't just keep talking about taxing the rich, because there's so many loopholes. It seems to me that a VAT tax and a flat income tax, along with other luxury taxes would be the fairest way to go. The VAT might also make people think twice before having a child that they will have to feed and clothe when VAT is applied. And remember the VAT is generally applied to goods and services.

Bob O'Connor of CA 3:11PM June 01, 2010

The logic used here by some of the contributors is typical moronic red-neck - NO NO NO.
I dont see many American or Canadian workers rushing to Hong Kong or Dubai either where there is minimal or no income tax.
The point about Canada was that a VAT is not a failed Euro/Greece style tax, but moreso that it is a tax used in hundred of countries around the world. No need to compare a potential US VAT with something no one in the US understands, a la Greek VAT, but instead, look at Canada and its GST system.
As for Canada's border enforcement law, since Canada like the US is a sovereign nation they hold the right to determine who is allowed to visit. The fact that you need a passport to visit Canada might be something new for most Americans, but the real fact of hte matter is that the reason Americans need a passport to visit Canada is because Americans need the passport to get BACK INTO THE USA.

canuckinkl 4:10AM May 31, 2010

You (Congress) can have your VAT when you agree to earmark all of it for universal national single-payer health care including old age nursing home care as needed. No dedication of all the revenue to that specific result, then no VAT, no way, no how.
Truth be known, VAT is a hoax on the people. We need very high income taxes on very high incomes, including capital gains and corporate income. We do not need taxes on transactions. We need taxes on the net income from transactions.
The Girls Gone Wild guy ought to be putting 3/4 of his income into the Treasury. He isn't. Oddly, Republicans, the party of church (or so they'd have you believe) want to give him some more tax cuts. Those GOP guys thinks he "creates jobs" for those drunk college girls with their clothes falling off, you know? They also think that a 50-million-dollar CEO "creates jobs"---knowing not that the only reason the guy is paid 50 million is for the "savings" he provided the corporation by cutting jobs.
So what about you? Do you get it yet? Or do you prefer to be a ninnie running around repeating the blurbs of the Chambers of Commerce?

Muser of NM 11:59PM May 29, 2010

Its not a European style tax. Canada, China, India, Australia, in fact most of the US trading partners have it and its called the GST in those places where its not called the VAT.
Fact is that in Canada the rate has dropped from the 7% when introduced in 1991 to 5% today. Canada has also managed to lower its Corporate tax rate to 15%, making it one of the most competitive nations in the world to do business. Isn't the US still charging tax at 35%?
People will always try and avoid paying tax, not just in Quebec but the world over. This really is one of Greece's big problems. People do not pay tax. People avoid tax. Corrupt officials allow such practice to grow and become generational. What has happened to civil society, to paying one's fair share???
tsk tsk

canuckinkl 12:18AM May 29, 2010

It works in Europe ? They have money growing on trees there ? May-be they should plant some of those trees in Greece, Spain, Iceland, Ireland, England heck may-be we just need Johnny Moneyseed Tree to run around the world, hope he stops at my house.
I don't hear of a big wave of Americans running to Canada for healthcare, jobs or lower taxes. Oh that's right Canada has really stict border enforcment laws, kinda like Arizona wants.

Hunter of WI 7:59PM May 28, 2010

Put it on the ballot, let WE THE PEOPLE VOTE ON IT !!!!!!!
Obama and congress does not have the brains to run this country or it's finances, There are a lot of things that should be taken to the people to vote on, Homo marriage, abortion, taxes, boarder security !!!!!!!!The Liberals have screwed up to much to have them try to fix it !!!!

jerrbarn of LA 7:41PM May 28, 2010

I live in Quebec and we have a value added tax in additiion to one imposed by the Canadian government. It is onerous as the combined tax is 15 1/2 %. There is a great deal of trying to get around the tax by people paying in cash instead of receiving a bill which would have the tax added on. Quebecers are the heaviest taxed citizens in North America but we survive. We benefit from $7.00 a day daycare for children of working parents. We receive free medical care and our universities are very inexpensive! Excellent education for a quarter of what a good U.S. university charges. Money does not grow on trees (wish it would as we have many forests) and it has worked in Europe for quite a few years. The U.S. has enormous debt and the citizens will have to pick up the tab.

Roslyn 6:11PM May 28, 2010

I live in Quebec and we have a value added tax in additiion to one imposed by the Canadian government. It is onerous as the combined tax is 15 1/2 %. There is a great deal of trying to get around the tax by people paying in cash instead of receiving a bill which would have the tax added on. Quebecers are the heaviest taxed citizens in North America but we survive. We benefit from $7.00 a day daycare for children of working parents. We receive free medical care and our universities are very inexpensive! Excellent education for a quarter of what a good U.S. university charges. Money does not grow on trees (wish it would as we have many forests) and it has worked in Europe for quite a few years. The U.S. has enormous debt and the citizens will have to pick up the tab.

Roslyn 6:10PM May 28, 2010