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Value Added Tax (VAT) in the US?

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Avino
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Value Added Tax (VAT) in the US?  Reply with quote  

Hi all,

I normally don't post links out, but I just read this article about a VAT in the US in a similar style to what the Europeans do. The reason, our federal spending and subsequent defecit have soared to a point where it may be the only option left to sustain our new levels of spending. I thought many of you would find it interesting.

I want to know your thoughts on this, the article can be found here.

Ultimately its the consumer who will pay the tax, so growth will slow, but government spending will continue to rise. We are ultimately moving towards a socialist / capitalist hybrid type economy.

~A.

Also blogging @ avinos2cents.blogspot.com
Post Tue Dec 02, 2008 2:45 pm
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coaster
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I'll have to read the article later, Andres, but I just wanted to post one comment: I'm all in favor of reforming the tax system to simplify it, and I'd be in favor of either a flat income tax, or a consumption tax (either point-of-sale or value-added) IF the current tax code is totally eliminated, along with the IRS. What are the chances that would happen? My concern is that Congress would go somewhere in the middle and we'd just end up with an income tax along with a VAT.

~Tim~
Post Tue Dec 02, 2008 7:08 pm
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Avino
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Hi Tim,

I would probably take it one step further, I would be in favor of one really high flat tax, lets say like 35, 40 or even 50% on all income and thats it. No fees for government services, no sales tax, no state tax, no property tax, no inheritance tax, none of the nickel and dime taxes and fees that when you add them all up probably equal about 50% of our income or more.

Instead the goverment will get one big chunk and divy it up amongst themselves. States x percent, communities x percent, federal government x percent and so on.

I really dislike being nickeled and dimed Confused

~A.

Also blogging @ avinos2cents.blogspot.com
Post Tue Dec 02, 2008 9:42 pm
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coaster
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Ouch. I dislike being nickel and dimed, too. But......I'm gonna have to disagree with you about services. I don't like paying for services when I don't use them. For example, I drive about 8,000 miles a year, a pretty low number in comparison to an average 15,000 (US DOT). Yet I pay the same licensing fees for myself and my vehicle. Fees are heavily subsidized by general revenues. I'd prefer to see user and licensing fees increased, so that they're paid by those who use the service, and not by general tax revenue. I'd even bill people for police/fire/rescue when they use the service. Bill people for how much garbage they put out. How many miles they drive. Renting books from the public library. Kids in public school -- wow, that's a big chunk of my taxes and I don't have kids.

I know a lot of that will never happen, some of them for sound sociological reasons. The schools, for example. Some people would just not send their kids to school because they can't or won't pay, and having a whole bunch of uneducated people around isn't good for society.

~Tim~
Post Tue Dec 02, 2008 10:09 pm
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Avino
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I know I was being a little extreme with that comment, but the bottom line is that we really need to reform the way we do things and TAXES in this country. What is going on now is only a prelude of things to come if we don't get our act together.

History has shown us that great and powerful countries have come and gone. If we want to continue being the greatest country on Earth, then we as a people have to start making some great sacrifices to get our act together. And unfortunately a VAT may be one of the ways to get our spending in line with our income Sad

~A.

Also blogging @ avinos2cents.blogspot.com
Post Wed Dec 03, 2008 2:48 pm
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coaster
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The U.S. is unique in its form of government; I hope it lasts forever. But, you're right, history shows that given the usual course of powerful countries/kingdoms/empires, the US is probably past its peak.

~Tim~
Post Wed Dec 03, 2008 8:42 pm
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