I’m gonna say this now and repeat it often and you want to educate yourselves on it too. The sooner the better. I cocka-roached the title from the Wall Street Journal online, but it’s certainly not funny.
VAT stands for Value Added Tax
(if it has value, they’re going to tax it!) and it works very similar to the GET (general excise tax) which you’re familiar with if you live in Hawaii.
In Hawaii the GE tax adds between 4 – 4.5% depending on which island you’re on, to the cost of ALL goods and services including food, groceries, drugs -even rent, making it especially onerous for lower-income people who spend a proportionally larger amount of their income on these necessities.
Many mistake the GET for a sales tax and when compared to sales taxes other places it seems fairly harmless, but it’s added to every step along the way from the manufacturer’s purchase of raw materials, to any middlemen involved and the transportation to market resulting in a real (but hidden) tax of between 8-16%.
So that’s the GET, but the VAT will be worse for all the same reasons and because it will be a much higher percentage tacked on to all consumer items purchased. European Union countries are required to have a minimum VAT rates of 15% with the average VAT rate just under 20%. Oh and by the way, this does not alter income taxes (which are going up) or the existing GET in Hawaii.
House Speaker, Nancy ‘stretch’ Pelosi floated the trial balloon as far back as October 2009 and advancing the push even further, the Senate voted 85-13 last week for a non-binding (read testing the waters) “sense of the Senate” resolution that calls for such a tax. They are incrementally getting us used to the idea and I can pretty much guarantee that after the mid-term elections in November 2010 you will see more and more pile on, again violating Obama’s promise,
“a “firm pledge” that no family making less than $250,000 a year would see any form of tax increase. Not your income tax, not your payroll taxes, not your capital gains taxes, not any of your taxes.”
How does this guy get away with it? I’ll tell you how by your silence. You’ve got to stand up and scream. Make yourself be heard and tell them you’re not going to take it any more!
That’s it for now, but don’t get caught asleep at the wheel, the VAT is coming!