DESTRUCTION OF AMERICA HAS STARTED DUE TO THE NEW ADMINISTRATION POLICIES-VAT TAX ADDING TO STIFLE COMMERCE AND GROWTH OF WEALTH

All people will become poorer due to the proposal of a VAT tax. Now keep in in mind that this is NOT the "fair tax" you may have seen advocated over the years; instead it is a regressive stealing of your money and provides a stifling amount of new costs to every single item you buy, use or acquire.

This new administration is hell bent on adopting the failed national models of Europe and some 143 countries have some sort of VAT (similar to sales tax but for the Federal government) and will propose to add a national TAX of 10% to everything you buy! In addition, this VAT tax is added to every purchase a manufacturer makes to buy the raw materials he uses, the producer of the raw material pays for everything he buys, and so on, and so on.

THIS IS A VALUE ADDED TAX ON EVERY STEP OF A COMMERCIAL TRANSACTION.

For instance, say that you are now a manufacturer of little plastic parts for some gadget that sells for $1 wholesale, to a retail chain like WAL-MART, who then marks it up to $1.97 for retail sale.

If the VAT tax was put into place, the company making the chemical plastic would then sell its $.25 product to the manufacturer for $.25 PLUS $.025 VAT so it would now cost the manufacturer $.275. Then the trucking company would charge VAT to their invoice, then the gasoline distributor charging the trucker to fill up would add his VAT, and then the independent owner operator would add his VAT to his bill to the trucking company, the manufacturer of the invoices that are used by all the suppliers would add VAT to their bills, and then even buying stamps to put on the invoices at the post office would have VAT added as well.

EVERY PURCHASE/SALE TRANSACTION INVOLVING A COMMERCIAL TRANSACTION WOULD BE AFFECTED AND THE TAX WOULD BE PILED ON AND PILED ON IN EACH FOLLOW-ON TRANSACTION.

Are you starting to see this catastrophe in the making?

Remember, the local sales taxes would not go away as they are the mainstay for the state governments and local governments now too.

Did anyone remember voting for this change?

There will be no economic recovery possible due to such a crazy idea, and it will actually stifle any upswing in the economic cycle.

On a day of mind-numbing acronyms that few aside from tax preparers can decipher without IRS instructions, we should note one that could mark the way to tax system salvation. It’s spelled V-A-T.

Currently, 143 countries levy some form of a value-added tax, or VAT, on goods and services. The United States is the only OECD country without one. In the European Union, VAT is the gold standard for funneling revenue to the federal level. The slippery socialists in France are able to fund 45% of the French state through VAT. The sales tax common in most U.S. states is similar to VAT, but it only goes toward state expenses.

One of the more viable proposals for an American version of the VAT comes from Yale University Professor, Michael Graetz. He proposes a 10-14 percent VAT in the US, versus the 19-25 percent required in Europe. This would generate enough revenue to allow the direct elimination of 100 million income tax returns. Coupled with a new maximum income tax rate of 25% on the wealthiest and a corporate rate of 15%, it could pave the way to much-needed solvency while simplifying a tax system mired in superfluous paperwork, loopholes and inefficiencies.

Graetz told Big Think today, “it is abundantly clear that we don’t have a system that is well-positioned to raise the needed revenue.”

On the relevance of VAT for the U.S., Graetz said an economic system as interconnected as the world’s is today should have some complementary tax features.

His proposal, elaborated in 100 Million Unnecessary Returns: A Fair, Simple, and Competitive Tax Plan For The United States, is getting more traction in Washington, though Obama is not expected to enact any sweeping tax reforms until 2010 at the earliest

If simplifying a byzantine tax system—one that swallows 7.6 billion work hours per year—was not sufficient reason to consider a VAT proposal, consider a simple projection. At the current rate of national debt, the share of the U.S. GDP comprised of debt obligations is forecasted to jump to 80%. Such a figure would bar a country from membership in the OECD, European Community or any other recognized transnational economic union: in short, a banana republic.

CONTACT YOUR SENATORS, YOUR CONGRESSMEN, AND EVERY OTHER SENATOR AND CONGRESSMAN, AND TELL THEM TO STOP THE CRAZY IDEAS.

Send emails, send letters make the phone calls. Be heard, be loud, it's YOUR MONEY!

THEN MAKE SURE YOU VOTE IN THE NEXT ELECTION AGAINST ANY POLITICIAN WHO FAVORED THIS CRAZY SCHEME.