The VAT – Don’t even think about it!
The following commentary comes from Roanoke Tea Party member Donald Koop, and the advocacy for the FairTax is his. The Roanoke Tea Party takes no official position on that proposal.
The dirty little secret is beginning to seep out. Your federal government, ever watchful for new ways to take your money from you in order to (in part) use it to compel you to adopt certain behaviors, is thinking about the socialist European Value Added Tax (VAT). Even Speaker of the House Pelosi admitted, in a recent PBS interview with Charlie Rose, that some form of VAT will need to be considered as part of the mix. This is frightening news, as it would provide an almost limitless source of money to pay for gross overspending on projects that (in part) we don’t want. And, it would be in addition to the income tax!
The VAT taxes the value added to each step of production of every good or service. For example, the addition of a windshield to a work-in-progress new car would require a tax on the increase in value of the car. Providers of goods and services will, of course, pass these taxes along to consumers as costs of production; i.e., as higher prices. In effect, the VAT is a sales tax imposed on all goods and services deemed to be subject to the tax. Further, the complexity of keeping track of all these mini-taxes is such that the VAT is only cost-effective if the tax is high enough. This could result in the tax rate being set at 10-15% and it is further subject to the whims of Congress when it comes to raising the rate.
The VAT, as a flat-rate tax on most of what we buy or consume, is extremely regressive. Unlike the income tax, which has been twisted and contorted in order to give a break to this group or that person, the VAT hits everyone with the same bat. The poor will pay a greater percentage of their expenditures in tax than those of higher income. Only a further set of contortions can relieve this certainty. Bring on thousands more pages of tax regulations!
Fortunately, many of us in the Roanoke Valley are served by a Congressman, Bob Goodlatte, who can be counted upon to vote against a VAT proposal as often as it comes up. Other Congressmen serving our region are not so certain, nor are our two Senators. We need to contact our wavering representatives often and with a simple message: The VAT – Don’t even think about it! Read more
Creigh Deeds”answers” the tax question
Creigh Deeds, candidate for Virginia Governor, discusses his plans for raising funds for transportation in the state (9/17/09).
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