Occasionally, someone who really knows what he or she is talking about actually speaks. Such is the case in the article by Timothy P. Cahill formerly the Democratic state treasurer of Massachusetts. (He is now running for governor as an independent.)
In an article titled: "Timothy P. Cahill: Romneycare's failure teaches need to repeal Obamacare" Mr. Cahill says the following: "Despite our warnings about the damage done by RomneyCare, the President and Congressional Democrats ignored the will of the American people and passed the bill anyway. Now we must send a message to Congress loud and clear: "Repeal and replace ObamaCare." Mr. Cahill goes on to say: "The only reason RomneyCare has survived at all is that we have been propped up by the federal government over and over again. But this begs the question of who will bail out the federal government when ObamaCare goes into effect."
Finally, Mr. Cahill says this: "There is still time to repeal and replace this bill before it is implemented. That's exactly what we have to do-before it is too late. You may read the entire article HERE.
So - how ARE we supposed to pay for ObamaCare? TAXES, TAXES and MORE TAXES!
In an article at The Washington Examiner entitled: "Slow-growth Europe, here we come" author Irwin Stelzer makes the following statement: "His (Obama) fiscal plan is to raise taxes; his political calculation is that Americans will come to love their new entitlements and rank him with Franklin Delano Roosevelt in their pantheon of heroes."
Mr. Stelzer goes on to say: "Next on the president's list is the financial services sector: More and in some instances better regulation of banks, procedures for winding down busted banks without massive taxpayer bailouts, consumer protection, control of bankers' compensation systems. On to the energy and education sectors, both also on Obama's "transformation" list. Mr. Stelzer's conclusion is as follows: "When the transformation of America is complete, the country will have been moved in the direction of the European social welfare state. You may read the entire article HERE.
Months ago we warned that Americans should prepare for a new "VAT TAX." That is a Value Added Tax. I don't think anyone took us seriously at the time -- no matter that this scribe was dead serious!
In any event, rest assured that the President's Commission on Fiscal Reform would suggest a European style VAT tax.
So - what the heck IS a VAT Tax? Well, you'd better sit down for this one: A VAT tax is a Value Added Tax. Below is a comparison of sales tax and a VAT tax (from Wikipedia) we hope will shed SOME light on a VAT tax. You may read the entire article HERE.)
"Value added tax (VAT), or goods and services tax (GST) is a consumption tax (CT) levied at each stage that value is added to a product or service. VAT is an indirect tax, in that the tax is collected, and paid to the state, by someone who does not bear the cost of the tax. In contrast to sales tax, the number of steps there are between the first producer and the final consumer is neutral in terms of tax charged, whereas sales tax is levied on total value at each stage, resulting in a cascade effect (at each stage tax is levied on the tax levied at the previous stage.
Ok, here is an example comparing a VAT TAX to a sales tax.
Consider the manufacture and sale of any item, which in this case we will call a widget. In what follows , the term "gross margin" is used rather than "profit". Profit is only what is left after paying other costs, such as rent and personnel.
Without any tax:
A widget manufacturer spends $1.00 on raw materials and uses them to make a widget.
The widget is sold wholesale to a widget retailer for $1.20, making a gross margin of $0.20.
The widget retailer then sells the widget to a widget consumer for $1.50, making a gross margin of $0.30.
With a North American (Canadian provincial and U.S. state) sales tax:
With a 10% sales tax:
The manufacturer pays $1.00 for the raw materials, certifying it is not a final consumer.
The manufacturer charges the retailer $1.20, checking that the retailer is not a consumer, leaving the same gross margin of $0.20.
The retailer charges the consumer $1.65 ($1.50 + $1.50x10%) and pays the government $0.15, leaving the gross margin of $0.30.
With a value added tax:
With a 10% VAT:
The manufacturer pays $1.10 ($1 + $1x10%) for the raw materials, and the seller of the raw materials pays the government $0.10.
The manufacturer charges the retailer $1.32 ($1.20 + $1.20x10%) and pays the government $0.02 ($0.12 minus $0.10), leaving the same gross margin of $0.20.
The retailer charges the consumer $1.65 ($1.50 + $1.50x10%) and pays the government $0.03 ($0.15 minus $0.12), leaving the gross margin of $0.30 (1.65-1.32-.03).
OK - Complicated enough for you? The bottom line is this: There will be a humongous increase in the price of everything you purchase, which is covered by a VAT tax. It ain't gonna be pretty.
Charles Krauthammer has authored a piece entitled: "The 'value added tax' is coming to America" In his article Krauthammer says: "People are used to sales taxes, and this one produces a river of revenue. Every 1 percent of VAT would yield up to $1 trillion a decade (depending on what you exclude - if you exempt food the yield would be more like $900 billion).
It's the ultimate cash cow. Obama will need it. By introducing universal health care, he has pulled off the largest expansion of the welfare state in four decades. And the most expensive. Which is why all of the European Union has the VAT. Huge VATs. Germany: 19 percent. France and Italy: 20 percent. Most of Scandinavia: 25 percent. (Read more from this Tulsa World article at HERE. )
You know I could not help but consider that God, Himself, only asks 10%! But then, Obama isn't God, just an uberhuman, right???
There is no doubt that a large percentage of Americans have NO IDEA what they got themslevs into with ObamaCare. Many will only get it as they stand in line for several hours just to buy toilet paper.
Yes, America is now a socialist state very much like the old Soviet Russia was and the modern European states are today.
Pity.
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J. D. Longstreet is a conservative Southern American (A native sandlapper and an adopted Tar Heel) with a deep passion for the history, heritage, and culture of the southern states of America. At the same time he is a deeply loyal American believing strongly in "America First". He is a thirty-year veteran of the broadcasting business, as an "in the field" and "on-air" news reporter (contributing to radio, TV, and newspapers) and a conservative broadcast commentator.
Longstreet is a veteran of the US Army and US Army Reserve. He is a member of the American Legion and the Sons of Confederate Veterans. A lifelong Christian, Longstreet subscribes to "old Lutheranism" to express and exercise his faith.
Articles by J.D. Longstreet are posted at: "INSIGHT on Freedom", "Hurricane Alley... by Longstreet", "The Carolina Post" and numerous other conservative websites around the web.
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written by Jay, March 31, 2010
You can't convince the average Russian that communism is good because they know what it is to stand in line for hours or even days only to be told when they get to the front of the line that there is no more food, toilet paper etc. But the average American high school or college kid will sit and lap up everything his infiltrating, communist college professor tells him about how great communism is and then go to the parking lot, drive home in his BMW or Porsche, eat a nice meal and go to a soft bed in a warm, dry house. Then he gets up the next day and does it all over again. It's easy for him to believe any lie that is told to him because he has never experienced the harsh realities of hunger or poverty under communism.
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written by BushDidIt, March 31, 2010
That's silly.
Bush's bail out is what got the Tea Party started. Just because you didn't notice doesn't mean it didn't happen.
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written by P.M.Lawrence, April 03, 2010
There is no such thing as a "VAT tax" any more than there is an "ATM machine", incidentally.
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written by Peter Elliott, April 03, 2010
Your big mistake was to let your Federal Government grow into a murderous goliath in the first place-- now you have to feed it... with your treasure and your children.
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written by Peter Elliott, April 03, 2010
As far as tax systems go, the VAT is pretty enlightened. Where things get nasty is where they have income tax, import duties, etc etc and then go and add a VAT on top to further wring the juice out of the booboisie. If you must have taxes, the ideal system would have only a VAT, and a small one at that.
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written by yrrab, April 03, 2010
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written by David K. Meller, April 03, 2010
The VAT offers one more incentive--if any were needed--for the further inflation of the dollar, which has already lost c. 98% of its value--$20.57/oz in 1913 when the Federal Reserve was founded to approx $1050./oz today--and its implemenatation would accelerate the final destruction of the dollar, when everyone has to "flee into real values", as Ludwig von Mises put it, and we all must regress to stone age barter while gold rea*serts itself.
The incentive to further inflate the dollar is certainly a additional reason why this truly horrid tax should be repudiated as soon as possible! It may well be, with government debt in the trillions of $$$ that the dollar's purchasing power has become fatally compromised, but you certainly don't want to give the government any further incentives to depreciate and evaporate its value!
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written by Joe Schmoe, April 03, 2010
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written by Alex Zoum, April 04, 2010
Also, yrrab is correct. The article fails to show an increase in tax. The example given has the same tax for the VAT as it does for the Sales Tax. Of course the VAT is involved in more transactions which can increase the cost of doing business (see comment from Larry Grenwood).
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As the initial step in the process involves costs to the company, the company is authorised to deduct those costs. Since the items used have had the VAT added to them the company can reduce the VAT used in the process. This is the same for every step in the in the process (manufacturing or service).
In real estate the salesman pays his desk fee (a service), his cel phone (a product and the ensuing service) Gas for his car, paper, printer ink, DSL costs etc... These are goods and services that are taxed, so they won't be double taxed the realtor can deduct the Vat on these items.
Imagine this taking place in every step of every stag of business. In Canada it added 4,500 employees to the internal revinue service. That would equate to 45,000 more people for the IRS. Also, every business no mate what size needed a VAT/GST number on every sales reciept (or it could not be used as a write-off). Can you say added cost to the grocer at the corner store etc...
Don't forget the other major player in the system, the accountant. Every step of the way requires more time spent getting the proper deductions. If accountants are busy now, they will be swamped by time the VAT is in place.