What's in Store for the United States if Obama Gets His VAT

They have been floating the idea of instituting a VAT for months now giving us a little peek here and there. This has been just to get Americans accustomed to hearing the term so that when they make their push for it the shock won't be as great. The idea of a VAT is on its surface appealing because it is essentially a consumption tax so if you don't spend money the amount of actual taxes you pay is lower. That, we can all agree, is a good thing as keeping more of the money we make is something we'd all like to do.

There are, however, two problems with the Neo-Lib Democrat's VAT plan. The first and foremost is that it won't replace the income tax. What this means is that all Americans will pay more tax because no matter how much we cut down on spending to lower our tax bill we will still have to buy basic items and those, if not taxed immediately, will most assuredly be taxed later on. And the prices of all goods will increase because a VAT is levied at each stage of production. Such is the way that the Federal Government operates. (And if you don't believe me, go look at the statements made in support of the original income tax proposals and the social security tax. You'll be shocked at what they promised vis-a-vis what is in place today.)

Second–-and here I again refer you to the original tax proposals for the income tax and social security–-no matter what they say the rate will be and no matter what they say will or won't be affected by the tax, as sure as the sun will rise tomorrow the rate will go up and everything will be affected.

In the aftermath if the disaster in the Gulf of Mexico we've heard a lot about America's addiction to oil. That brings a big yawn to me every time I hear it brought up because oil is necessary until we are able to come up with another form of usable energy. The more chilling addiction in America isn't, however, the evil of fossil fuel addiction but the Federal Government's debilitating addiction to more taxes and more regulation. We should all–-and I mean that literally–-pay our fair share of taxes which is something that isn't done today and won't be given that the Neo-Libs use taxes to ensure that the underclass keeps voting Democrat. But the bottom-line is that our Representatives and Senators and the Executive Branch have to quit looking at their ability to raise the tax rate at will as merely the privilege of the political class to replenish the government's coffers. It's time to revoke Washington's unlimited credit card and to reorder the way our government spends our money.

The linked article from the BBC (and a tip of the hat to my good friend Pete R.) is about a projected rise in the VAT rate in Romania. The average VAT in Europe is 20% and Romania is going up to 24%. That's what will be in store for our nation if we allow the Neo-Lib Democrats to push through a VAT on top of the income tax.

Follow the link for a glimpse of the future should Obama and the Neo-Libs succeed.