Skip to comments.VAT: The cowardly tax(April 2010 Cain opposed VAT and was for a National sales tax)
Posted on 10/19/2011 9:19:20 AM PDT by sickoflibs
Now that President Obama and the Democrats have generated a projected record $10 trillion in new debt over the next 10 years, they are now singing their favorite song: We must raise taxes!
Sen. Dick Durbin, D-Ill., sent the first signal a few weeks ago when he said paying taxes is the price we pay for living in this great country. Never mind that we are paying too much and that too much of our money is being wasted.
One of the president's senior economic advisers, Paul Volcker, said recently in a speech that "we must raise taxes" to deal with the deficit. Never mind that the administration and the Democrats made an already bad deficit situation worse, and never mind that they were aware of the situation before they jammed the disastrous health-care bill through Congress for the president's signature.
It is outrageous that they have played the taxpayers for the sucker punch of the century. They ignored the coming deficits of Social Security, Medicare and Medicaid while passing the massive health-care bill. To make matters worse, Mr. Volcker is suggesting the dreaded value-added-tax, also called a VAT tax.
Please insert the scream of your choice right here if you already know the implications of a new VAT on this country. Otherwise, keep reading.
A VAT is not a single new tax. It is several new sneak-a-taxes. It taxes each phase in the development of a product or service until it is ultimately sold to the end user, and you also pay any applicable retail sales taxes. These intermediate taxes are passed along to the consumer and are reflected as a net increase in the price of the goods or service.
The doubly outrageous aspect of the VAT is that it is on top of all the other state and federal taxes we pay. Paul Volcker and the Democrats like the VAT because it is hidden from the clueless and uninformed voter, who will forget about it soon after it is passed if it is passed.
The VAT is also a cowardly tax increase because these same clueless and uninformed voters will easily blame the greedy retailers for raising the prices of their merchandise. And for the 50 percent of the taxpayers who have figured out how not to pay any taxes at all, this administration and Congress will find a way to give them a VAT exemption.
Just as Obamacare puts this country a giant step closer to becoming the United States of Europe, passage of a VAT would certainly seal the deal as the New Europe, which would be nearly impossible to undo. I said nearly impossible, not completely.
The answer to reducing the deficit and supercharging the economy is to replace the tax code with the single-rate Fair Tax(National Sales Tax). This solution assumes, however, that there is no continued increase in federal spending. With this administration and Democrat-controlled Congress, stopping the spending is completely impossible.
Obama and the Democrats in Congress would never consider the answer to reducing the debt and stimulating the economy I just proposed, because it does not achieve their goals of a government power grab, expanding the role of government in our lives or creating more social programs for the clueless and the uninformed so they will continue to elect and re-elect liberal Democrats to Congress and the White House.
Never mind what We the People want, but we will remember in November.
I see reading comprehension is NOT your strong suit.
Actually READ the article. 9-9-9 and VAT are totally different type of taxes. There is NO VAT in 9-9-9.
I cant sell Cain’s plan FOR him but I can clear up this BS being spread around about him.
you know VAT isn’t anything like a Sales Tax, right?
VAT is paid through every level of the economy for ever value add to a process.
Sales Tax is only on its final consumption by the consumer.
That is the point of my re-posting this. He knew the sales tax was NOT a VAT even then and explains the difference.
I see you have brought over your same rosy personality to Cain.
The VAT angle comes up not because of Cain’s sales tax, but because his corporate tax is based on
“Gross income less all purchases from other U.S. located businesses, all capital investment, and net exports.”
That is, corporations cannot deduct the cost of labor when figuring their taxable income. It’s that aspect that makes Cain’s corporate tax like a VAT.
However, the analyses I’ve seen (including Bachmann’s disengenuous remarks last night), neglect to mention that the ~8% that corporations currently pay on labor through payroll taxes are eliminated in Cain’s proposal.
Seems like "box o' rocks" Bachmann And Myth Romney does not know But he will sell you a lemon(RomneyCare).
does not know the difference.
the difference between an apple and an orange.
Seems like "box o' rocks" Bachmann
And Myth Romney does not know
But he will sell you a lemon(RomneyCare).
I think that is what sickoflibs is saying.
See #5. What is the problem??
I see reading comprehension is not MY strong suit :-)
I posted this to defend Cain against misinformation being spread against him and I get two complaints by Cain-bots who only read the title and not my comment #1 thinking I was being critical on the point.
Bachmann beat Cain and the others hands down on the 14th amendment question so go lightly on her.
Yep it was a very dishonest comment from a Tax Lawyer like Bachmann. She knows full well her statements were not accurate.
Look, only so many characters allowed in the title so you have to read comment #1 to get my point in posting this.
This probably explains why when Cain was asked about a "good fed chairman" at the NBC debate did not cite Volker. Seems Volker gone over to the dark side. Someone better let Ron Paul know about this.
Thanks for the article. Given the criticisms against Mr. Cain’s 9-9-9 plan and people claiming it is a VAT tax, this article from Mr. Cain shows that he is steadfastly against VAT so I can hardly believe that he would suddenly propose such a thing.
I mean, after all, he isn’t 0bama!
That’s what I did. I was defending you. :-)
An uninspiring moment with Paul was when he was critical of the 9% sales tax claiming he thinks it great that half the country pays no Federal taxes (beyond entitlement and gas) with the rest picking up the tab for the voters endless wish-lists, as if that is a stable situation.
I dont think Paul ever got any significant spending cuts passed in his whole career unlike REAL doers like John Kasich. But he talks big.
April 2010 -— why bother — looked like another dredging troll
Why not get a current article then link in your comment to this one and then get into it.
You are doing a good job at doing what you can do to sell 999. This is what we all have to do.
No candidate can do it alone.
As I’ve said previously, it’s time for those of us who understand the comprehensive benefits of this idea, not only for our economic prosperity, but even more importantly for our political freedom, to do the LINEMAN PUSH.
We have to get behind the ball carrier and double-down on pushing and pushing and pushing him against and over the defensive wall into the end zone. Keep pushing until the whistle blows.
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