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Posted: 9:30 a.m. Monday, Sept. 28, 2009

VAT TAX ... "MORE PLAUSIBLE TODAY THAN EVER" 

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By Neal Boortz

The Obama administration is desperately searching for ways to take more money away from you and use it to fund its dreams and schemes. After all, the painful truth that most people forget is that the government does not earn any money. Basically, there is only one way for the government to get money to spend, and that is to seize it from the private individuals who worked for and earned it. Since government is force, this isn't hard. You have producers and looters. Not hard to figure out which is which, is it?

When you think about it, one big difference between Republicans and Democrats is the manner in which they choose to loot, and the subtlety with which they operate. With all of the spending The Chosen one has generated, you just know that they're burning some midnight oil trying to figure out new methods of plunder. One particularly onus tax is gaining much favor ... the value-added or VAT tax. In fact, John Podesta says that some form of a VAT tax is "more plausible today that it ever has been."

Podesta says that a consumption tax would "create a balance" with other economies and could substantially effect competitiveness. Now, Podesta says that a VAT tax would be regressive but can be "balanced" by exempting certain products and "[supporting] low-wage workers." By "supporting" low-wage workers Podesta, of course, means more income transfer and welfare programs.

Let's wade through some of the rhetorical bull squeeze here, shall we?

Podesta calls the VAT a "consumption tax." When you really think about it, ALL taxes on business are consumption taxes. That would be business tax burdens are passed down to the ultimate consumer of the product or service taxed. Right now businesses and corporations pay federal income taxes, one-half of the Social Security taxes, unemployment taxes, worker's compensation taxes and a bunch more. These taxes are built into the price of whatever that corporation or business sells to its customers. Eventually all of these taxes are paid by the final consumer. All that Podesta (and Obama) are proposing is the addition of one more tax --- one more tax to roll down hill and nail the consumer at the end of the chain of production.

If this idea gains traction in Washington will you be ready? Will you be ready to duplicate the 9/12 DC tea party with a FairTax march on Washington. You know, and these political hacks know that there is a better plan out there. A TRUE consumption tax. Let every product and service reach the ultimate consumer carrying absolutely no tax component at all ... then charge an honest and open inclusive sales tax as the product goes from the marketplace to the final consumer.

It is beyond outrageous that Obama's dog washers would be considering this atrocity when a fully researched and vetted idea like the FairTax is out there. But we all know why the political class will fight the FairTax, don't we? The VAT would ADD to the power of the political class. When they get to sit up there and decide what will be taxed, and what will not be taxed; and to set the rates for those taxes ... now that's what power is all about. The FairTax, on the other hand, transfers that power to the people. The payment of taxes would be voluntary. You could chose to live at the sustenance level and pay no taxes at all to the federal government. You only pay taxes when you make the voluntary decision to expand your spending past that required to provide the basic necessities to your family. You're in control. Complete control And that's what makes the FairTax so frightening to the political class.

Watch this VAT nonsense, my friends. It is something that will not only take dollars out of your pocket; it is a tax you will truly come to hate. Just another wonderful change you can believe in.

 
 

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