Posted on 04/07/2010 3:11:00 PM PDT by 2ndDivisionVet
A taxing development surfaced on Wednesday.
White House economic advisor Paul Volcker is calling for a new national sales tax -- a value added tax or "vat" -- to help close the deficit.
But as CBS 2 HD found out area residents are saying "vat chance."
Talk about starting a tax revolt. Volcker's call for a new national sales tax -- on top of the state and local sales taxes we pay now -- got a loud Bronx cheer from just about everyone.
"That's crazy. That really is crazy. Why would need any more taxes than we already have?" said Kathy Merritt of Watchung, N.J.
"It's a bad idea. New Yorkers are struggling as it is already. We don't need that. We need incentives, breaks, jobs," East New York's Lee Santiago said.
"They're trying to make those of us who have a few bucks poor so everyone will be poor and everyone will be the same," added Charlotte Wein of Midtown.
Here's what the former mayor of Yonkers said when CBS 2 HD into him on the street:
"The Obama administration continues to be extremely out of touch with mainstream America. We're over-taxed so it's just a continuation of his far left, extreme left, agenda and I think it's a disaster for New York and actually the rest of the country, too," John Spencer said.
The new so-called value added tax would come on top of state and local taxes. Economists say the tax would also be imposed on manufacturers and producers.
"You don't need a PhD in economics to figure out that what the producer is going to do is pass this along to the customer," said Ken Goldstein of The Conference Board.
So if the vat is 10 percent, that sweater you pay $31.50 for today would have and additional:
*50 cents in taxes added on by the yarn supplier
*$1 in taxes added on by the manufacturer
*50 cents added on by the wholesaler
*$1.50 added on by the retailer
Now the sweater costs $35 plus state and local sales taxes, which is 8.75 percent in New York City.
One thing that may keep the Obama administration from imposing the tax this year is that every member of Congress is up for election come November. But next year, all bets are off.
Jose Barro, an economist for the Manhattan Institute, told CBS 2 HD that the vat might work if the government agreed to reduce personal income and corporate taxes at the same time.
Oregon, not California.
Hey, if the USA wants to be “cool” like the Europeans, then a VAT is what it will take to make us cool.
In my travels I have noted those socialist countries with ‘healthcare’ also have VAT of 20% or so.
The dingbats who voted for Obama are going to find their bottle of White Lightning just went up in price. Sorry dingbats. Nothing in life in free.
If the spending keeps up at projected levels without the tax increases, we'll get an even bigger crash down the road when we can't roll over debt, the dollar crashes, and inflation goes through the roof.
Bend Ovah for the VAT up yer wallet!
No VAT until they completely abolish income and corporate taxes.
“Jose Barro, an economist for the Manhattan Institute, told CBS 2 HD that the vat might work if the government agreed to reduce personal income and corporate taxes at the same time.”
The history of taxation in Europe and the history of both the US income tax and SS tax (both of which started out very small on a very small fraction of the population) does not make one optimistic about this prospect.
Indeed the history of government and taxation in western democracies generally illustrates that Americans’ distrust of government is well-placed. Governments inevitably over-promise and under-deliver, meaning that well-intentioned government programs inevitably cost more and deliver less than originally promised. This results in ever-higher levels of taxation.
Ironically, the countries that have adopted the most sensible approach to taxation—flat taxes on consumption—are former communist countries. Once they threw off the chains of totalitarian rule, these countries often adopted flat-tax systems that minimized the burden on the average citizen and inhibited the temptation by government to use the tax system for social engineering—i.e., awarding tax breaks for favored activities or interests.
An organization committed to freedom like the Manhattan Institute should be using its megaphone to resist VAT, not offering rationalizations for its adoption.
Well it’s nice that you have an opinion, but we won.
Now you’ll pay the tax and smile while you’re doing it.
-your friends on the left
Food and Malt Liquor will be exempt!
Run spending through the roof then say we have no choice but to levy gigantic taxes, but we will give refunds to the underclass so they don’t get hurt. Vote for Obama.
LOL ... redistribution, reparations ...
O and the Crats have got to be thrown out..QUICK!
And people thought gov’t run healthcare was gonna be free!
Funny that the people whining about this the loudest probably don’t pay ANY federal income tax.
Knowing liberals - it won’t be a “VAT” in place of income tax - it’ll be a VAT PLUS income tax. What was that promise Obama made about not raising taxes on those making less than a certain amount. I’ll bet the New York Times has already forgotten he ever made such a promise...
President Body Odor is stinkin up the joint.
NY has two open Senate seats and there is still no Republican running for either seat? These people vote Dem and they expect the Dems will stop trying to take everything they have?
Are campaign “donations” subject to the VAT?
You meant to say Night Train or Thunderbird, right?? Possibly MD 20/20???
Damn VATscists.
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