Once Considered Unthinkable, U.S. Sales Tax Gets Fresh Look

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 governments 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 Obamas policies, the chairman of the Senate Budget Committee declared that a VAT should be part of the debate.

via The Washington Post.

Horah, more taxes! Here I was worried that 30+ % of my income going to government programs just didn’t feel like enough. Here is another few smart solutions to our fiscal problems

1. Stop paying & treating government workers like their jobs are sacrosanct. Fire people when they screw up.
2. Cut programs who soley exist to throw away money to a select few
3. Privatise expensive government pension and drug benefits

I mean these kinds of reforms work perfectly well in Chile. Are we not smart enough to make them work here?!

Obama’s Global Tax Raid – WSJ.com

President Obama revealed Monday that he’s half a supply-sider. If only someone could explain to him the other half. We have a tax code, the President said, “that says you should pay lower taxes if you create a job in Bangalore, India, than if you create one in Buffalo, New York.” That sounds like a great argument for lowering taxes on the guy creating jobs in Buffalo. Alas, that’s not what he has in mind.

Great article over at the WSJ explaining why the proposed tax changes of Obama are going to hurt American companies big time if imposed.

Protecting Arizona’s Family Coalition Update

This was forwarded to me from a friend as part of a larger mailing:

The Legislature has it wrong.  Overspending is not the core problem.  Tax cuts made over the last ten years without thinking through the consequences for a growing diverse state with many changing needs are the fundamental problem.  Arizona has to decide what its wants for its families’ financial stability and independence, education and quality of life.  This approach won’t work.  We cannot continue to cutting our way out the revenue situation and recession.  New creative alternatives that have a vision for the future of Arizona and its families are necessary. 

via - Weekly Email Update Archive – Protecting Arizona’s Family Coalition.

 

This is absolutely absurd, the problem is in tax cuts not excessive spending? Of course, they’re not stupid enough to advocate raising taxes on people during a downturn, just insinuating it. Maybe they think there is a “creative solution” to revenue. Maybe the state could hold a bake sale!

This group believes they can get a free lunch by borrowing money to fund spending that will be paid back “eventually.” Times are tough for everyone, and that includes state services. If you think that certain services should be spared then find other places to take cuts. One thing is certain, cuts have to be made and it isn’t the fault of “tax cuts.”

Everything goes to hell: “We can’t cut now! We need these services!”

Everything going great: “Why cut now?! The services aren’t that expensive and we’ve got plenty of money!”

The Last Democrat to Promise Lower Taxes

A nice opinion article from the WSJ abou the last time a charismatic Democrat promised to lower taxes on the middle class by taxing the rich.

“Now, I’ll tell you this,” he said. “I will not raise taxes on the middle class to pay for these programs. If the money does not come in there to pay for these programs, we will cut other government spending, or we will slow down the phase-in of the programs.”

Mr. Clinton, of course, won that election. And as the inauguration approached, he began backtracking from his promise. At a Jan. 14, 1993, press conference in New Hampshire, he claimed that it was the media that had played up a middle-class tax cut, not him. A month later, he announced his actual plan before a joint session of Congress.

via Main Street – WSJ.com.

Paying Taxes is Patriotism?

Via Wealth Report:

In an advertisement released today, Sen. Joe Biden, running to be Mr. Obama’s vice president, says the wealthy should pay higher taxes because it is the right thing to do for their country. “It’s time to be patriotic,” he says in the ad, “…time to jump in, time to be part of the deal, time to help get America out of the rut.”

In the modern world, where a person can live in thousands of locations with all the benefits of Europe or America,  the solution to everything cannot be “tax the rich.” They’ll leave and take their job creation, company starting, and philanthropy with them. Yes, the wealthy should pay more than the average person, but there has to be a limit.

Just as the average person fears the wealthy not getting a fair deal, the wealthy fear getting screwed.