25% national sales tax would pay for universal health care, balance the budget and exempt most Americans from the income tax

[Saddle Bronc 124]

Only if combined with some cutting of the trichinosis from the spending side of the budget.

(from ex-Canadian who notices that not even Globe And Mail--considered ultra-liberal--was proponent of the Gouge and Scr@w Tax railroaded onto Canucks in 1990 by Mulroney)

Edited May 27, 2009 by CherryXS

[one...two...tree 2,762]

If there was an exemption amount per person (say $12,000), I think it could be workable.

[Kar98 0]

In most countries that implement VAT, food is 0 rated not exempt. Effectively for the consumer that means no sales tax on food.

In Germany there's a 19% sales tax, and 7% on food. And guess what? Health care is still extra and costs 15.5% of your gross income.

[Mr. Big Dog 10,747]

Except if it was done here it would just go on top of our current taxes, not eliminate them. You know those damn Dimocrats, they have to pay for all that spending somehow.

Conservatives are the ones who have wanted a consumption tax.

Yes, Under the assumtion all other taxes would be eliminated.

Yes, because the poor are precisely the people you want to burden the most.

They would pay very little in taxes since they have little money to buy products to consume. All they need to buy is food which is not taxed.

Instead of rolling on the floor, perhaps you should work on improving your reading comprehension.

To quote from the original article.

A gallon of milk would jump from $3.69 to $4.61...

Or are you suggesting that milk is somehow not food?

No, I said a consumer and or flat type tax would be supported if they eliminated all other taxes. The $3.69 to $4.61 is a tax on top of other taxes.

No, you said that food wouldn't be taxed while the article clearly suggests otherwise.

[one...two...tree 2,762]

In most countries that implement VAT, food is 0 rated not exempt. Effectively for the consumer that means no sales tax on food.

In Germany there's a 19% sales tax, and 7% on food. And guess what? Health care is still extra and costs 15.5% of your gross income.

Are you the foreign spouse?

[Peikko 1,575]

Germany offers a lot of social benefits. For example, the government is currently paying the cost of keeping workers on a short work week in companies that have a drop off in sales. It is doing that rather than having them laid of completely which would presumably cost even more.

[Mr. Big Dog 10,747]

In most countries that implement VAT, food is 0 rated not exempt. Effectively for the consumer that means no sales tax on food.

In Germany there's a 19% sales tax, and 7% on food. And guess what? Health care is still extra and costs 15.5% of your gross income.

And income is taxed as well.

[justashooter 430]

In most countries that implement VAT, food is 0 rated not exempt. Effectively for the consumer that means no sales tax on food.

In Germany there's a 19% sales tax, and 7% on food. And guess what? Health care is still extra and costs 15.5% of your gross income.

And income is taxed as well.

sounds like a socialist heaven.

[Peikko 1,575]

Be very afraid, Germany is full of almost commies.

[one...two...tree 2,762]

Be very afraid, Germany is full of almost commies.

almost commies...

[mawilson 2,133]

Except if it was done here it would just go on top of our current taxes, not eliminate them. You know those damn Dimocrats, they have to pay for all that spending somehow.

Conservatives are the ones who have wanted a consumption tax.

I like it. A consumption tax is one way to get all those pesky illegal aliens

[w¡n9Nµ7 §£@¥€r 123]

Except if it was done here it would just go on top of our current taxes, not eliminate them. You know those damn Dimocrats, they have to pay for all that spending somehow.

Conservatives are the ones who have wanted a consumption tax.

I like it. A consumption tax is one way to get all those pesky illegal aliens

Not only illegals, but tax dodgers of all kinds. And the structure being discussed here that of a VAT, not a simple point-of-sale sales tax, so even products sold illegally will likely have a good deal of tax already built in to the price.

[GaryC 7]

Anything to rid ourselves of the IRS would be welcome. Jeez, I am just a middle class nobody with a simple lifestyle and doing my taxes is a royal pain in the azz.

[w¡n9Nµ7 §£@¥€r 123]

Anything to rid ourselves of the IRS would be welcome. Jeez, I am just a middle class nobody with a simple lifestyle and doing my taxes is a royal pain in the azz.

I've never felt that doing my taxes is a pain in the azz but maybe your situation is more complex than mine.

[w¡n9Nµ7 §£@¥€r 123]

Kudlow: The VAT is a sure way to permanently depress economic growth

Everyone should closely read today’s Washington Post story on the value-added tax, or VAT. The cat is now out of the bag. For months I have argued that Team Obama and the Democratic Congress were going to be forced to consider a VAT in order to pay for their extravagant spending.

...

This VAT tax would come on top of existing income, payroll, and business taxes. This is how the European countries and many others do it. And the VAT is a tax imposed throughout the economic food chain, at all levels of production, finally ending up inside the consumer pocketbook.

The VAT is a sure way to permanently depress economic growth. It’s also a sure way to Europeanize the American economy. But at some point, after the economy gains at least some cyclical economic-recovery traction, the Obama Democrats will want to re-label themselves as deficit-reduction fiscal hawks. Hence the VAT, a real bad idea.