V.A.T (Value Added Tax) or a National Sales Tax

Wow, talk about something we don't need. The idea of having to pay an additional 10 or 20 percent on top the price of everything you buy, is now being thrown about in Washington. It's being touted as the answer to the burgeoning debt, and as a cure-all to finance a socialized health care plan, like those found in Canada and Europe. What will we get from this new tax? Imagine having a monthly budget for food and utilities and gasoline. All of these will be impacted by this new tax. Not only will this VAT be paid at every level throughout the production, and retail cycle, it will especially hurt the end user( read consumer)This tax will be on food, gasoline, tobacco products, automobiles, and it would include any services provide, ( think lawyers, or service industry, think airline tickets.) It would even be included into the purchase price of the home you want to buy. This type of tax if it were to be implemented as a stand alone tax, could have had an argument made for it. But as an additional tax to your income, state, county, local and school tax will instead end up further hurting any economic recovery that we are/will experience in the near future. There is no guarantee that there will be a ceiling on this tax, and just like the income tax it could end up skyrocketing. Long term it will cause even more people to find ways around paying taxes. They will try to sell goods without declaring sales. It will create an underground for products and goods, creating a new class of criminal. click here for an opposing view go here http://www.washingtonpost.com/wp-dyn/content/article/2009/05/26/AR2009052602909.html Sphere: Related Content