Saturday, October 29, 2005

The VAT Tax, fast track to economic slavery...

Ernest S. Christian executive director of the Center for Strategic Tax Reform and Gary Robbins of the Heritage Foundation write in an article titled Tax Code Reform Should Not Include VAT Tax on about the proposed VAT tax that the Presidents advisery panel has considered as a means of reforming our current ridiculous tax code. This VAT(value added tax) would be a second tier taxation along with the current system. The difference according to this article? The VAT would be for those 90% of Americans under a certain income bracket, it would only tax goods and services and payrolls, no tax filing at the end of the year any more. While the 10% or so of the remaining Americans will continue to pay taxes as usual, by filing a yearly tax return.

My question here is , will the 10% of the population that still pays taxes still be subject to this VAT? If so, then they would be double taxed, paying yearly and throughout the year through normal activities of commerce as the rest of the 90%. As I mentioned in a previous post regarding the presidential tax advisery panel, this nonsense needs to stop. It is apparent that this panel is useless and is not looking out for the American people at all, only trying to see how much more can be siphoned from our hard earned incomes. Out of all of the myriad ideas presented to this committee, the one idea that involves adding more taxes, and complicating the system even more is the one they seriously consider! Either these people are incredibly dishonest and greedy or just plain stupid! Maybe both.

What say you?

More info on tax reform research:

Tax Reform Briefing Room

Fixing America’s Tax Code
In this series Mr. Christian points out a quite compelling point about the current reluctance to reform our tax system stating:
"...the stakes riding on successful tax reform are enormous. Because if the Congress and the President cannot (or will not) reform something so fundamental or readily fixable as the tax code, what hope is there for ever doing anything about the rest of the federal edifice, where the faults are much grander and reform is far more difficult to achieve?"
Something to think about.

1 comment:

Michael_the_Archangel said...

As a people we continually get suckered by taxes, one of my favorite financial gurus said that if we were paid in cash on our pay days (instead of check or direct deposit) and then had to walk a hallway and give cash to all those hands that were held out for our money (i.e. the tax collector) - if you really saw how much you were paying, if you had to hand it over one dollar at a time to the government man; there would be a huge tax revolt in this land.

I know the government needs money to run and survive but we all know how they waste it. I would like to see a tax reform - but not another added tax. The ONLY tax reform that makes sense to me is a flat tax of 10 or 15% on what we make. If a dollar comes into your house you owe the government 10 or 15 cents from it. No write-offs, no deductions, and no "end of the year taxes" - real simple. No wonder it won't work.