Note: A similar tax has been introduced in Ontario and BC ( CANADA) called the HST Tax. It combines both taxes (Provincial and GST Federal Taxes) that equal in the range of 12%, this starts on July 1 2010.
In order to pay for the national health care plan, the Democrats were already planning to impose a tax surcharge of between 1.0% and 1.5% on those whose income is $350,000 or more. I did the numbers on this and I came up with 300,000 lucky taxpayers who will be burdened with the privilege of paying for our health care (the Democrats say it’s more like 1,000,000 taxpayers, but I think I’m closer). Now it looks as if the regressives agree with me.
The report, which will be released on Wednesday, said the administration can’t rely on taxing richer Americans and companies to reduce the deficit to sustainable levels by 2014 because those groups would see 40% tax increases.
Guess what else is happening on Wednesday? Just a coincidence I’m sure, but the Volker Panel on How to Raise Taxes Without Anyone Noticing is meeting as well. The meeting will be streamed live starting at 12:30 if you wish to tune in to their public deliberations.
I predicted in March of this year that the Administration would look to a VAT to raise taxes:
My guess is that it will include non-food retail sales and they will add services (information, professional, technical and scientific, administrative and support, waste management and remediation, but excluding medical services). The services aspect is important because this will skew the tax more to corporations and upper income taxpayers. …[Obama] will structure it so that low income people will get a refund of taxes paid. The refund will be phased out as income increases.
In 2008 retail sales (excluding food) were about $4 trillion. Services in 2007 were another $2 trillion. Let’s say they need to raise $1 trillion over the next 4 fiscal years, or $250 billion a year. That would require a 4.5% national sales tax. In Europe they call this a value added tax (VAT) and the rate in the E.U. is about 15%.
LINK HERE
FAILED BANK LIST:
LINK HERE
The harmonized sales tax you refer to in Canada will have the effect of reducing the tax burden on corporations and placing it on the end users (consumers.) This has been well documented. There has been a significant political backlash in BC to this tax, as there was a provincial election in this province earlier this year and the governing party promised during the campaign NOT to introduce this tax. After being returned to office the very same party announced the introduction of the HST just a few weeks later. Canada has had a federal VAT tax for almost 20 years (the current rate is 5%.)
ReplyDeleteBC and Ontario will be combining their provincial sales tax with this VAT - this is the origin of this new consumption tax. The federal tax covers goods and services that typically are not subject to provincial sales tax. The new harmonized tax will see these provinces expand their provincial sales tax to all goods and services covered the the federal sales tax.
This new tax is also NOT revenue neutral. This new tax also has the effect of increasing the amount of taxes due, when compared with the existing tax structure.
Thus, under this arrangement the state is collecting more in revenue than it did in the past.
As these taxes are applied in Canada they become a huge government revenue machine that impacts the individual and not large corporations. In Canada large business loves this arrangement.
in America, people have a way of working "around" taxes.... the more they tax.... the more it will drive the underground economy... and it has the lowest tax rates of all.... 0 percent.! hahahaha...
ReplyDeleteAnon at 6:11PM... Amen!
ReplyDeleteIt's like paying capital gains on gold and silver when selling. Sure I will. BWAHAHAHAHA
This is perfect! By 2011, the Value added tax will be 25%, just enough to pay for the bankster bailouts and our military victories throughout the world, fighting them brown skinned Al Qeda terrorist worldwide, along with them blond haired Al Qeda terrorist that I'm seeing on every street corner these days right here in the good ole USofA!
ReplyDeleteThank God for the Value Added Tax that will save our country and allow us to live in peace and harmony!
Let the f'ers go ahead and do this. It's past time this POS governemnt was overthown and this just might light that match that does it!
ReplyDeleteMany states, counties and cities have already increased their sales taxes plus other taxes and fees...
ReplyDeleteNext cap-n-tax, then vat....
How much more can the parasitical b@stards in the District of Criminals and the other government parasites bleed the Ameerikan Sheeple???
At what point do people overthrow these corrupt, lying, thieving government criminals?
This Website is stealing Bob Chapman's copyrighted work. You don't even bother to give him credit.
ReplyDeletehttp://theinternationalforecaster.com/International_Forecaster_Weekly/Dangers_Failures_Diversions_and_Shortfalls
"What is going to happen next is that the 6-month stock rally is about to end. It took everything the Fed could muster to accomplish this. As the market heads lower government, Wall Street and banking will have to contend with irate shareholders and retirees as well as owners of stock, life cash value insurance policies and annuities. This time when the market falls it isn’t coming back. The bottom on the Dow will be 2,600 to 4,200 if we are lucky."
1:46, not that post again. The link is supplied if you have a problem with the words LINK HERE email me. If you cannot read it and NEED IT BIGGER please EMAIL ME.
ReplyDelete"This Website is stealing Bob Chapman's copyrighted work. You don't even bother to give him credit."
ReplyDeleteHmmm...does this mean you're NOT going to donate???
ugggggggghhhhh, I ALREADY SUPPORT EVERY UNEMPLOYED, HOMELESS, OCTOMOM, WELFARE CASE, ETC ETC, IN THIS COUNTRY....THANKS FOR THE BUZZ KILL ALL ABOVE...UGGGGHHHH.UNLIKABLE.
ReplyDeleteUGGGH I ALREADY SUPPORT AND PAY MONEY WHILE THE SCUMBAG CHURCHES ARE TAX FREE UUGGGGHH AND THEY DO NOTHING BUT DRIVE MERCEDES AND HAVE BIG HOUSES UUGUGGGHHH ALL RELIGIONS ARE SCAMS AND ARE UNLIKABLE UUGGGHHHH
ReplyDeleteWHAT DOES THIS HAVE TO DO WITH RELIGION , ANYWAY I DONT KNOW WHERE YOU ARE FROM BUT ALL THE "CHURCH PEOPLE " IN MY AREA LIVE MODESTLY AND FRUGALLY. THE JEWISH PEOPLE IN MY AREA ARE THE ONES THAT ARE LOADED!!
ReplyDelete