Dems: U.S. Sales Tax Gets Fresh Look

[He Who Pawns]

With budget deficits soaring and President Obama pushing a trillion-dollar-plus expansion of health coverage, some Washington policymakers are taking a fresh look at a money-making idea long considered politically taboo: a national sales tax.

Common around the world, including in Europe, such a tax -- called a value-added tax, or VAT -- has not been seriously considered in the United States. But advocates say few other options can generate the kind of money the nation will need to avert fiscal calamity.

At a White House conference earlier this year on the government's budget problems, a roomful of tax experts pleaded with Treasury Secretary Timothy F. Geithner to consider a VAT. A recent flurry of books and papers on the subject is attracting genuine, if furtive, interest in Congress. And last month, after wrestling with the White House over the massive deficits projected under Obama's policies, the chairman of the Senate Budget Committee declared that a VAT should be part of the debate.

"There is a growing awareness of the need for fundamental tax reform," Sen. Kent Conrad (D-N.D.) said in an interview. "I think a VAT and a high-end income tax have got to be on the table."

more...

http://www.washingtonpost.com/wp-dyn/content/article/2009/05/26/AR2009052602909_pf.html

So, I assume the Dems want to do a National Sales Tax in ADDITION to the income tax???

I would personally support a national sales tax, if it meant ending the invasive income tax. But the only way this is will happen is if Dems agree to repeal the income tax -- which I believe would have to be done via a Constitutional amendment. Otherwise, they could say, "We are ending the income tax and replacing it with a national sales tax." Then, five years later, they would reinstate the income tax.

[ChaosControl]

They want both so they get more monies. I mean heaven forbid they reduce spending and allow people to live their own lives, nope we must control the people more. All hail Big Brother!

[AuH2O]

A clever end around Obama's promise not to raise income taxes on those earning less than $250k?

[phill4paul]

A clever end around Obama's promise not to raise income taxes on those earning less than $250k?

;)

[Jordan]

Let the black market begin...


This is terrible. Its a tax on money that has already been taxed. People on fixed income should be pissed. Savers should be pissed. This is ridiculous.

I feel a revolution brewing...

[torchbearer]

Want to see our economy finished off?
Add a national sales tax on top of everything else.

In Louisiana you'd have-
a federal income tax
a federal sales tax
a state sales tax
a state income tax
a parish property tax
a city property tax
just for starters.

that doesn't include all the taxes businesses are passing on to consumers already like-
inventory tax
payroll tax
profit tax
liquor license tax(on all levels- city/parish/ and state) (also each employee has to have one too)

[nate895]

This idea is preposterous. I don't think it can pass. If it does, LORD help us.

[jkm1864]

Well if all the taxes were repealed I would not mind paying a 20% federal and 10% states sales tax. I wouldn't even mind it if I paid a 33% price increase at the register but it would have to get rid of corporate and other social tax schemes. We would actually see increases in pay then and companies would make more money and we would take home more money. I currently pay 3400 to 3700 a month in taxes when I go offshore a whole month. If I was to be taxed that under a fair tax I would have to pay over 10k a month at the register which will not happen. The good thing is people would get out of debt faster and the banks would get less money because less loans would be taken out because people would save more.. Hey this could even fix the so called energy crisis because You could say tax gas 60% but then make the prices on solar panels and electric cars have a 0% tax. This is a winner in my book but if they don't repeal the progressive tax system I will not spend money so fuck them. As a matter of fact they are taxing the hell out of cigs so I went to a pipe which I can get a pound for 23 bucks so go figure..........

[LittleLightShining]

So, I assume the Dems want to do a National Sales Tax in ADDITION to the income tax???

I would personally support a national sales tax, if it meant ending the invasive income tax. But the only way this is will happen is if Dems agree to repeal the income tax -- which I believe would have to be done via a Constitutional amendment. Otherwise, they could say, "We are ending the income tax and replacing it with a national sales tax." Then, five years later, they would reinstate the income tax.The Democrats will not get rid of the income tax because they want it to be progressive.


A clever end around Obama's promise not to raise income taxes on those earning less than $250k?Of course it is!

[acptulsa]

The Democrats will not get rid of the income tax because they want it to be progressive.

Wait a minute. They defend the income tax because it's progressive, yet they're looking at a national sales tax? Isn't that pretty much the single most regressive form of taxation ever created?


Of course it is!

No one really thought they were poor enough to escape Obama's tax increases, did they?

[LittleLightShining]

Wait a minute. They defend the income tax because it's progressive, yet they're looking at a national sales tax? Isn't that pretty much the single most regressive form of taxation ever created?



No one really thought they were poor enough to escape Obama's tax increases, did they?I'm surprised to see them advocating a sales tax but when income tax revenues are down they have to find another way to pull in the dollars.

[Number19]

Technically, I don't think implementing a VAT tax would require a constitutional amendment. But politically, for Congress to create an entirely new tax of this magnitude, imposed on all Americans, will be controversial in the extreme, across the political spectrum. I agree, it will be very hard to accomplish.

[HOLLYWOOD]

I thought 'CAP & TRADE' was to be the new 'Progressive Hidden Tax'?

Of course there's always the Good Ole; Inflation Tax

[Number19]

I thought 'CAP & TRADE' was to be the new 'Progressive Hidden Tax'?

Of course there's always the Good Ole; Inflation TaxThe problem, here, is that Cap & Trade will not bring in the required revenue. To ease its passage through Congress, the latest plan is to give away, at no cost, these credits to the utility companies.

[winston_blade]

If the Dems really push this through, they won't get elected again to the POTUS for the next two decades.

[Reason]

YouTube - NATIONAL SALES TAX ON ALL GOODS (http://www.youtube.com/watch?v=v9iFuZRcTfw)