http://www.washingtonpost.com/wp-dyn...032502406.html
We are now $8 trillion in debt. The Congressional Budget Office projects that $12 trillion will be added over the next decade. Obamacare, when stripped of its budgetary gimmicks -- the unfunded $200 billion-plus "doctor fix," the double counting of Medicare cuts, the 10-6 sleight-of-hand (counting 10 years of revenue and only six years of outflows) -- is at minimum a $2 trillion new entitlement.Not to mention we're seeing an increase in taxes Jan 1st so say peace to 75-125$ EACH paycheck. Your government at its finest.That's where the value-added tax comes in. For the politician, it has the virtue of expediency: People are used to sales taxes, and this one produces a river of revenue. Every 1 percent of VAT would yield up to $1 trillion a decade (depending on what you exclude -- if you exempt food, for example, the yield would be more like $900 billion).
It's the ultimate cash cow. Obama will need it. By introducing universal health care, he has pulled off the largest expansion of the welfare state in four decades. And the most expensive. Which is why all of the European Union has the VAT. Huge VATs. Germany: 19 percent. France and Italy: 20 percent. Most of Scandinavia: 25 percent.
As a substitute for the income tax, the VAT would be a splendid idea. Taxing consumption makes infinitely more sense than taxing work. But to feed the liberal social-democratic project, the VAT must be added on top of the income tax.
In my own words:
Let's put it this way, the U.S is trying to pass a bill that would impose the tax, "Value Added Tax", which means; Instead of paying your normal sales tax, you now pay another tax on top, for example. You go to Kohl's and buy a plain white ...t-shirt for 10 bucks, get your normal 6% increase, that is 10.60. Well you buy the same white T shirt with a symbol of a skull on it for 15 bucks, + 6%, which is about .70 cents. Well now that you bought something with added value, you can now face up to another 20% tax to your item, making your item worth 18.70 to buy instead of just 15.70. This applies to EVERYTHING that that comes plain, and has something that would add value.
Another example: Going to a restaurant, buying meatloaf with mashed potatoes with nothing on it, you would pay your normal 10 bucks, + food tax w/o a VAT tax. If you add gravy to your mashed potatoes, you now pay the food tax PLUS the 10-20% VAT tax for added value to your potatoes. America.... at it's finest.
TLDR: Economy sucks, let's adopt another way to squeeze money out of America, and fuck over small businesses, as well as every American.