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| Economy |
| Volcker: Taxes likely to rise eventually to tame deficit |
| 2010-04-07 |
| (Reuters) - The United States should consider raising taxes to help bring deficits under control and may need to consider a European-style value-added tax, White House adviser Paul Volcker said on Tuesday. Giving a speech tonight, Paul? Here. Float these trial balloons for me, willya? Stress that they're kinda European. The rubes love that shit. As you wish, Volcker, answering a question from the audience at a New York Historical Society event, said the value-added tax "was not as toxic an idea" as it has been in the past and also said a carbon or other energy-related tax may become necessary. "Not as toxic"? To who? Though he acknowledged that both were still unpopular ideas, he said getting entitlement costs and the U.S. budget deficit under control may require such moves. "If at the end of the day we need to raise taxes, we should raise taxes," he said. How 'bout cutting spending, Paul? How 'bout rolling back a few 'entitlements'? |
| Posted by:Steve White |
| #14 phil - the VAT will not replace sales tax. It will be in addition, for sure Canada tried that for a while and is now in the process of converting provincial sales taxes into provincial GST (VAT). The problem with provincial (US state) VAT is it opens up widescale fraud, already a big problem in Europe where EU countries levy different VAT rates. Which removes one of the big advantages of a VAT - fraud is difficult (with a uniform rate). |
| Posted by: phil_b 2010-04-07 23:06 |
| #13 phil - the VAT will not replace sales tax. It will be in addition, for sure |
| Posted by: Frank G 2010-04-07 22:08 |
| #12 VAT is a much better consumption tax than the USA's current sale taxes. Although, beware that it will be federally administered and hence they get to chose which states get the revenues. Left of center governments will screw states enacting right of center policies. We have exactly this problem in Australia at the moment, where the federal Labor government has made a huge cut in GST (VAT) revenues going to Western Australia, the only Liberal (right of center) governed state. Think of a federally adminstered VAT as welfare for badly run states. Sorry NS, but a progressive VAT isn't possible. It would result in a washing machine being sold in 500 pieces to attract the lowest level of tax. |
| Posted by: phil_b 2010-04-07 21:44 |
| #11 I agree with beldar on the sales tax but the monthly billing? What if you don't pay? Debtors prison? Or hard labor camps? |
| Posted by: chris 2010-04-07 14:24 |
| #10 VAT? No. If they are going to impose a consumption tax then just impose a sales tax so EVERYONE can see what they are paying, right then and there, to the government. Same goes for income tax - no more withholding, just a bill every month for estimated income tax, like a credit card bill, and you have to pay it off either monthly or in a lump sum at the end of the year when you file. Let people realize explicitly how much the Government takes from them. |
| Posted by: Beldar Threreling9726 2010-04-07 13:37 |
| #9 unfortunately no other taxes will be reduced and no corresponding spending cuts will ever happen. Liberals will more likely do VAT tax like this: FOXnews +15%, CNN -5% Toyota +15%, GM -5% Cigarettes +25%, Marijuana 0% Republican Voter registration +15%, Tea Party +25%, Democrat -20% American +15%, Illegal Alien -5% |
| Posted by: airandee 2010-04-07 11:55 |
| #8 VAT is still the worst kind of tax. It lowers the purchasing power of your income. The "fair" tax is probably the worst name going. Best Tax is a Land Value Tax. Adam Smith & David Ricardo both give it a thumbs up. |
| Posted by: Bright Pebbles 2010-04-07 10:55 |
| #7 Would it be accurate to say that the FairTax is essentially a VAT with a "prebate" check payment system in place to attempt to eliminate any regression? |
| Posted by: ExtremeModerate 2010-04-07 10:23 |
| #6 VAT is a tax on consumption, not income. That is why it is not progressive. We don't have a tax problem, we have a spending problem. If we got our spending under control, I wouldn't mind a VAT, even a progressive VAT, i.e. 1% on Items under $10, 3% on Items $100-$100, 5% on Items $100-$1,000 etc. Paul Ryan's Roadmap for American includes a VAT disguised as a Business Sales Tax. If enacting a VAT would allow the elimination of the Income tax, including repeal of the 16th amendment, I would be all for it. More here via Instapundit. The hot topic today. |
| Posted by: Nimble Spemble 2010-04-07 09:26 |
| #5 Anticipating hyperinflation? When you have too much money floating around, one way to reduce it is by higher taxing to move it out of circulation. Now why would we be facing hyperinflation Paul? /rhet question |
| Posted by: Procopius2k 2010-04-07 07:23 |
| #4 VAT is a tax on incomes. It's probably also the worst possible tax if you're "progressive" as it tends to tax the poor a lot more than the rich as a %age of salary. |
| Posted by: Bright Pebbles 2010-04-07 06:50 |
| #3 As the sign in the STD clinic reads, "Erections Have Consequences." |
| Posted by: Black Bart Ebberens7700 2010-04-07 06:49 |
| #2 More trail baloons from the bafoons. Bend over, here it comes again (BOHICA)! "Value Added" WHERE? Yes indeed, the Germans love their 20% VAT! Try adding another $5k to $7.5k on to the price of a moderately priced new or used automobile and see where car sales end up. We'll then have state and local sales tax, and a Federal VAT as well (followed by State and City VATs later of course). What's not to like about that? |
| Posted by: Besoeker 2010-04-07 04:59 |
| #1 And they think consumer spending is low now? |
| Posted by: Cheresh Black7582 2010-04-07 02:12 |