Filed under: bankruptcy, DEBT, Economic Collapse, economic crisis, federal spending, Great Depression, greece, Income Tax, italy, middle class, Paul Volcker, pelosi, Senate, slavery, Taxpayers, tea party, US Economy, VAT, White House | Tags: tax strike
Spend It Now! A Huge New Tax Is Coming…
Daily Wealth
April 9, 2010
Everything you buy is about to become 20% more expensive…
I’m not kidding. The latest idea out of Washington is to pay for its insatiable appetite for spending with what’s called a “Value-Added Tax.”
It’s like a huge new national sales tax, on everything. In simple terms, the difference is that with a sales tax, the consumer pays it. With a “VAT,” the manufacturer pays it. The consumer won’t see it in the price on the shelf or on their receipt.
Politicians love this tax because it’s a stealth tax… You can’t see it when you buy something, but they still get their money. And unless you make your voice known, chances are excellent we’ll eventually have a Value-Added Tax here.
The thing is, making things 20% more expensive here and giving that money to politicians won’t save America. It’ll make us less competitive. For Exhibit A, consider the state of European governments right now…
Greece, for example, has a VAT of 21%. Its government is bankrupt. The Value-Added Tax didn’t save Greece.
Italy and Portugal have a VAT of 20%, and they’re only a little less bankrupt than Greece.
Astoundingly to me, the Value-Added Tax in France has now crept up to a full 50% of France’s government revenues. So how are things going in France with a Value-Added Tax?
France is unable to compete in the world. Unemployment is terminally high. The unemployment rate is now 10% in France. In 2005, the unemployment rate was 10%. And back in 2000, unemployment stood at 11%. Like I said, it’s terminal…
Clearly, the system is not working. So why is the U.S. government in such a hurry to adopt it?
The Wall Street Journal explained it yesterday: “Taxes on the rich can’t begin to finance the levels of new spending that the current government has unleashed… ”
And foreign governments have been less willing to buy our government bonds lately. So the government needs a new source of a lot of money.
At first, a Value-Added Tax will be offered up by politicians as a small tax – just a temporary fix to get us over the hump on our current budget woes. But we know how it will go… Like all taxes (and parasites), it will become permanent in our lives and it will steadily grow. Remember, the VAT in France is now 50% of government revenue.
All we can do right now is let our politicians know we’re against more taxes… because we know down in our toes that governments spend every dollar that comes in… and then some.
Think about it this way: When your child has overspent on the credit card, you don’t hand over a new card to spend on.
We don’t want to give our politicians a new credit card to ring up charges. Reject their request for another massive credit card, in the form of a Value-Added Tax.
Oh, the other thing you can do is make all your big purchases soon, before a Value-Added Tax comes along and adds 10%-20% to the price of everything you buy…
VAT attack: Beware: ‘Value-added tax’ is an economy-killer
New York Post
April 12, 2010
 Paul Volcker |
One of President Obama’s top economic advisers, former Fed chief Paul Volcker, suggested this week that it’s time for America to adopt a VAT, or value-added tax. The White House yesterday downplayed the idea — but it’s sure to resurface: It’s an inevitable consequence of a government that’s too big now and likely to grow even bigger thanks to Washington’s reckless spending spree.
Don’t get me wrong: The VAT — on top of all the other taxes Washington imposes — is a terrible idea. Imposing it would pretty well finish the transformation of our country into a European-style slow-growth nation. The right way to close Uncle Sam’s gaping deficits is to reverse the continued explosion of federal spending.
The VAT is a type of national sales tax, levied on the value-added at each stage of production. Consider a piece of furniture: The VAT would be imposed when the raw timber is sold, when the sawmill produces lumber, when the manufacturer builds a chair, a tax at the wholesaler level and then when a retailer sells the chair to a consumer.
To avoid double taxation, each seller along the way gets a credit for taxes paid at earlier stages of the production process. So the final tax to the consumer, at least in theory, is the same as a retail sales tax of the same amount.
The VAT has its virtues: As a single-rate, consumption-based system, much like the flat tax or national sales tax, it would introduce far fewer economic distortions than today’s income tax — and a heckuva lot less paperwork.
That would be a persuasive argument — if proponents wanted a VAT to replace the Internal Revenue code. But that’s not what’s intended by Volcker — or Senate Budget Committee Chairman Kent Conrad and House Speaker Nancy Pelosi, who’ve also been chatting up the VAT.
The politicians want a VAT, and they want to keep the income tax. (To be more accurate, they want a VAT and to raise other taxes as well.)
They want the cash, of course, so they can continue buying votes by spending other people’s money.
This decade already has seen a huge expansion of government. In the Bush years, federal spending rose from $1.8 trillion in 2001 to $3.5 trillion in the last Bush budget. Now President Obama is well on the way to doubling outlays yet again.
He has already saddled the economy with $800 billion of “stimulus” and a giant new health-care entitlement, and his proposals for next year will push the federal budget even higher.
Meanwhile, our aging population and the built-in growth in federal programs like Medicare, Medicaid and Social Security has a dramatic expansion in the size of government set to occur automatically in coming decades.
Simply stated, there’s no way to finance all this new spending without an added broad-based tax. But this is exactly why we should vigorously resist a VAT.
Blocking a VAT may not be sufficient to control the size of government, but it’s necessary. Handing Washington a whole new source of revenue would be akin to giving keys to a liquor store to a bunch of alcoholics.
Chuck Norris: More Tyranny Plus More Taxes Equals More Protests
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noworldsystem.com 
I have followed Bilderberg for years and I am banned from “bilderberg.org”, because I question their sources..such as Danial Estulin, who admits that he gets his info from MI6, CIA, SBS (KGB).
Estulin is a NWO information tube!
I was posting about the coming DESIGNED financial collapse in 2001/2. I could explain why is was DESIGNED, but it would take too long and anyway, YOU should make it your business to find how and why the NWO did this to humanity…because the hell has only just begun!!!
Globalisation was a scam which has journeyed the “bell-curve” and now it has stopped. These plans to tax us to death is the full stop after; “globalisation has ceased by NWO decree”. This means that most of the 6.5 billion people on this planet are surplus to NWO requirements…THEY call them THE USELESS EATERS.
The recent high level nuclear meetings which are ongoing, has nothing to do with peace and everything to do with the soon to start conflicts which will mutate in short order into WW3…these war[s] will be fought at just the right pitch, so as to not justify using nukes…all by prior agreement…THIS IS BEING SORTED RIGHT NOW!!! This does not mean that nukes won`t be used. They most likely will be, but limited planned use.
Remember, it took the US over one year past the point of knowing to declare that the US was in an economic mess, so 2011 makes it an 5 year bottoming out phase. It will take another 10/15 years before we get near to 2005/6 numbers…FORGET THE STOCK PRICES…that is a debt bubble and it will pop!
Every aspect of this depression was planned and big war (current wars are NWO constructs and are small compared to what is coming) is the way out…1929…1939..WW2…2007 and who knows.
All the big players are in on it. China and India cannot cope with their populations, they`d love it to be slashed through war. And you can expect more planned pandemics…we`ve just had “cry wolf 1”, now we`ve been sent to sleep.
Bilderberg has become very light weight and is now used to mislead the interested few…I`m not saying their meeting has know value, but I, and many other were posting about the collapse and its length, so when we hear (NWO message) that bilderberg is going to decide it will go on until 2011, I laugh…it was always going to last at least 5 years and maybe longer.
Sorry for the rant, but someone need to say it. On a closing note. Most site who claim to be fighting the system (NWO) are really about supporting it. They make you feel good, they recycle old alternative news and they have nearly all the claimed interested open minded free thinkers wandering around a poorly lite cul-de-sac..THEY CONTROL EVERYTHING!!
So my best advice is prepare and look after your family. If you are reading this, you are halfway there. If you live in a city, don`t flee like most advise…the big cities will be locked down, so you will be safer than in the open country…where even if you are armed, you will be a sitting duck[s] Hyperinflation is about to kick in..its already here, but soon its going to get bad and the shelves will go bare. You have been warned. I read the other day that 10 million Amerikans disappeared in the Great Depression…they starved. :)
Comment by Carl Jones April 14, 2010 @ 10:01 pm[…] economy-killing VAT tax has literally destroyed European nations like Greece, the U.S. now faces a similar fate. Barack […]
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