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he piece in question seems fairly damning in terms of the political dog and pony show. It has to do with the idea of a national sales tax, which as I’m sure you will recall, is one leg of his 9-9-9 plan.

The worst idea is a proposed national sales tax, which is a disguised VAT (value added tax) on top of everything we already pay in federal taxes…

First, we have a spending problem in Washington, D.C. not a revenue problem. The Commission claims their goal is to reduce the deficits by $4 trillion over the next decade. The task force says its plan would save $6 trillion by 2020. It’s sort of like dueling promises that would never happen, because when has a proposed cut in Washington D.C. ever produced the intended savings over 10 years? Never!

Even worse is reason number two: In every country that has established a VAT with the promise of reducing their national debt, the VAT has eventually gone up or expanded on top of the existing tax structure. After discovering many of the tax grenades in the recently passed health care deform bill, which is already driving costs up and access down, it would be real easy for an overzealous bureaucrat to insert the language in the legislation “national retail and wholesale” tax.

WELL WELL, SEEMS HE REALLY LIKES THE vat TAX NOW THAT HE HAS PROPOSED THAT ALONG WITH HIS SALES TAX.

There a different between a sales tax and a VAT. Let me explain for you:

A sales tax, the consumer pays the tax once, on purchase. This is is the way it works with your state sales tax.

A VAT on the one hand, is a tax imposed at multiple points from the manufacturing stage to the end consumer. This is the way it works in most of the world.

I favor a national sales tax, the Fair Tax as Herman Cain does. I do not favor a VAT.

Simple and straight.

What VAT tax? What 999 does is reduce the income tax to a flat 9% and totally eliminates the social security and the payroll taxes and other taxes as well.

Watch, listen and try to comprehend:

http://www.c-spanvideo.org/program/CainsTa

It’s obvious you have no idea what a VAT tax is. A VAT tax ADDS hidden, embedded taxation at each stage of production, transportation, marketing.

The 9-9-9, taken as a whole, strips out almost all federal embedded taxation on every level of production and uses a visible 9% Sales Tax. The result of taking out embedded taxation is cheaper goods at retail (which are then taxed at 9%).

Would you rather pay zero percent on a dollar, or 9% on $0.85?

And the 9-9-9 is great for exports, while making imports less attractive, relative to domestically produced goods.