VAT Coming to U.S.?

So I was just listening to the radio and the report of the statement made by Obama this weekend that the U.S. is out of money. (Cheery thought.)

A scramble is now going on in Washington to find a new source of income (words of the radio persona) and apparently the Washington Post reported today that what is on the table is...VAT, perhaps as high as 25%.

I recall when VAT began being added in SL about a year ago that some (I can't say "many" because I don't know, but I do know some as it directly affected the sim upon which I was living at the time) people sold off land due to the extra money now being charged.

If VAT is instituted in the U.S., pondering the effect it will have on land, businesses, and SL in general.

What do you all think?

http://www.washingtonpost.com/wp-dyn/content/article/2009/05/26/AR2009052602909.html

That I can't wait for the next election

If we make it through intact now.

If they tried to institute a 25% VAT in the USA, they would likely have an armed tax revolt on their hands. Not gonna happen.

I think that VAT will never come about, cause it has been talked about for decades here, and would simplify tax returns putting tax attorneys and CPA's out of business.

My boss wouldn't like that...

They wouldn't do it as one big massive national tax hike. While there are those in the administartion that are arrogant enough to propose such a thing, the revolt in Congress alone would end any thoughts of it fairly quickly. It will be done piecemeal instead. Expect to see all the everyday taxes and fees we see go up, as well as new taxes on all sorts of things we do on a regular basis.

They'll probably add a sin tax to rolls of duct tape.

I needed that. Hopefully this is just talk.

Looked up the link:

http://www.washingtonpost.com/wp-dyn/content/article/2009/05/26/AR2009052602909.html

Good point. Something I've heard bandied about on various talk shows lately is requiring all states to have a state tax.

So to link that to your point, start at the state level and work up.

The Washington Post article says, among other things:

It also quotes a professor who claims that a VAT between 10% and 14% would be enough to entirely exempt families earning less than $100,000 from the income tax.

I wouldn't get too worked up about it yet. It's not surprising that it's on the table, but remember that it's mostly conservatives who support the VAT, liberals who oppose it.

I loved this part of the article:

"[Leonard] Burman suggests that a 25 percent VAT could do it all: Pay for health-care reform, balance the federal budget and exempt millions of families from the income tax while slashing the top rate to 25 percent. A gallon of milk would jump from $3.69 to $4.61, and a $5,000 bathroom renovation would suddenly cost $6,250, but the nation's debt would stabilize and everybody could see a doctor."

Well, that's good. Because the poor are going to have to visit their doctors a lot more often if they can't afford to buy milk.

Tax the internet? (runaway, runaway, runaway....)

The English would send crates of tea in order to try and keep everyone calm.

Not much talk of this anywhere but on the Post.

But... a VAT would likely only hurt the wealthy, who in the US could use some hurting. This is a country where the top 5% make over 80%+ of the money, executives have salaries hundreds to thousands of times greater than labor (compared to Japan, EU, and Korea where its more like 6 times), and most of us have fallen below what our parent's generation once defined as middle class.

We need a little Robin Hood style taxation around here.

If products (including groceries and necessities) get taxed extra, wouldn't that hurt lower income people as well?

It was a conservative talk show where I heard this with the ensuing conversation of this being a very bad idea. Many conservatives are supporting the "Fair Tax Doctrine" which I've heard discussed and *think* is an across-the-board flat tax on income with no tax breaks/shelters, etc.

Not true. Please quote some sources. VAT isn't remotely close to conservative principles - maybe there are some republicans claiming they support it, but not all republicans are conservatives and not all conservatives are republicans - especially since the election.

That is being talked about. In New York, there are proposals flaoating around to put a tax on every internet download, be it movies or music.

This "Health Care Reform" scheme is very interesting. Commissar Pelosi is trying to fast track it through, limiting time to debate or fillibuster so it can be rammed down everyone's throat, much like the 1000 page stimulus bill that no one in Congress will admit to reading as it was thrown out there and voted on right before she had to go visit The Pope.

They're all despicable, no matter what side of the aisle they sit on.

The same Washington Post article you quoted also listed how it was a Dem, specifically Rahm Emanuel, the Presidents Advisor of course, pushing the VAT.

http://www.washingtonpost.com/wp-dyn/content/article/2009/05/26/AR2009052602909.html

Nonsense

I don't know about you, but I sure as hell don't want to pay 25% for a gallon of milk or a loaf of bread, or a pair of shoes. It would hurt me, and I am far from wealthy. Stop listening to the class warfare memes. Wealthy people would absorb it fairly easily. It would hurt the middle class, working people, who have managed to make a little something for themselves. unfortunately, Washington considers them as "wealthy".

Why do you hate wealthy people?

Gee, what a surprise. I figured the tax cheat who runs the Treasury Dept would be the big cheese on that one.

Just as long as they don't apply it to my favorite whisky . . .

the hurt the wealthy thing is just more instigating of class wars- more socialist agenda - more gimme gimme and forget the people that worked ffor what they have- oh wait a minute- echo echo echo...