Fritz Hollings, Beltway Tax Hikers, and the VAT [Hollings Hollers Back]

ATR ^ | 2011-06-09 | Ryan Ellis

[92nina]

...This is why a VAT is so dangerous. According to Hollings, a VAT with a rate as low as 6% would be enough to eliminate the entire corporate income tax and still leave the government with $506 billion left to spend. Over a decade (which is how tax hikes are scored), this would probably be a net tax hike approaching $6 trillion. This with a very low-rate tax system. The government would do with this extra tax money what they do with all extra tax money--spend it. A VAT is a horrible idea for America, and precisely for the reasons Hollings claims. Politicians won't be content to simply replace other taxes with a VAT. The tax rates involved are so low, and the VAT is so opaque, that the VAT will result in a massive new tax hike in no time at all. Hollings is simply showing the endgame early here...

Read more: http://www.atr.org/fritz-hollings-beltway-tax-hikers-vat-a6227#ixzz1Oo7HmGWH

[92nina]

Fritz Hollings may be out of the Senate, but even like Sauruman with a broken staff, he can still cause some mischief.

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