W.H. adviser Volcker acknowledges National Sales Tax as an "unpopular move," recommends it anyway

[Amerigo Vespucci]

http://www.nypost.com/p/news/national/bam_man_pitching_national_sales_TyKWnlkz2W09rQuHKPJx4J

Bam man pitching national sales tax

By GEOFF EARLE in Washington and TONY DAVENPORT in NY

Last Updated: 8:57 AM, April 7, 2010

Posted: 3:14 AM, April 7, 2010



Acknowledging it would be a highly unpopular move, White House economic adviser Paul Volcker said yesterday the United States should consider imposing a "value added tax" similar to those charged in Europe to help get the deficit under control.

A VAT is a national sales tax that, like state and city sales taxes, would be collected by retailers.

Volcker, at the New-York Historical Society, told a panel on the global financial crisis that Congress might also have to consider new taxes on carbon and energy.

"The President has passed historic tax cuts for middle-class families and continues to push for more tax cuts. The President is not proposing to cut the deficit at the expense of middle-class families," said a White House official asked for comment.

The VAT suggestion was immediately met with outrage by Republicans.

"It shouldn't surprise anyone that the Obama White House would advocate a European-style tax to help finance their European-style government health-care plan," said Brian Walsh, a spokesman for the National Republican Senatorial Campaign Committee.

"When you hear things like this, though, it's almost as if the Democrats think the American people will forget that we're in this situation because of their reckless spending agenda."

Volcker, a former chairman of the Federal Reserve, told the global economic panel that a VAT is "not as toxic an idea as it has been in the past."

He added, "If, at the end of the day, we need to raise taxes, we should raise taxes."

The tax has long had backing from House Speaker Nancy Pelosi (D-Calif.), who last year said it is "on the table" for dealing with the country's fiscal woes.

[Ian David]

1. Not just no, but FUCK NO! n/t

[unhappycamper]

2. Wanna get the deficit under control?

Get out of Iraq and Afghanistan & then chop the military budget by 60% or so. Perhaps we can also take a stab at closing some of our Imperial outposts around the world.

[WhiteTara]

4. +1

[Confusious]

26. Don't forget the rich

A nice 20-30% increase in their taxes would fix things also.

[Statistical]

3. "If, at the end of the day, we need to raise taxes, we should raise taxes."

Ok fine. We already have an income tax. Simply raise that.

A new tax doesn't magic money out of whole cloth. It is simply a way to hide total taxation.

Raise the income tax on the rich to pre-Reagan levels. IF (and only if) more revenue is still needed then raise taxes modestly on middle class. All this can be done with current income tax system.

[Cosmocat]

7. It is THAT simple ...

Honestly, they did the right thing in dropping the tax rate under Reagen, they just went totally irresponsible with it ...

At that point, an 85% rate was ridiculous ... But, dropping ALL THE WAY down to 32% or whatever was reckless ...

Clinton got it bumped up to 39%, still well over half less than historic levels in the 1900s AND controlled spending ...

"magically" he left office with a balanced budget and the budget trending toward surpluses that would help pay down the debt ...

Idiot boy and the pukes dropped the rate too low again, then threw out taxes on dividents AND dropped paygo ...

Record deficits ...

It is THAT simple ... Get the top tax rate back up to 40% and use paygo ...

The Rs are going to KILL the Ds regardless, the media is letting them vice the Ds on both fronts - screaming apocolyptic proclomations over the debt while at the same time pushing for more friggen tax cuts ... There is a good fight to be had over raising the top rate, but a VAT is giving the MSM open season to let the Rs just KILL the Ds ...

A VAT would FOR SURE one term BO and also FOR SURE flip both sides off congress ...

[Statistical]

10. Too simple.

Good news is top rate will go to Clinton levels automatically (39.6% I think they didn't want to say 40%) because Bush tax cuts will expire unless Republicans magic 60+ votes by end of the year.

However we have accumulated so much debt over last 8 years by having rate lower than 39.6% that we likely need to raise it a little more.

I am sure the CBO can get exact number but maybe an extra 3% or 5% (43% to 45% total for top bracket).

[LiberalFighter]

5. That last sentence is hogwash.

NY Post writers are imbiciles. To equate that something is on the table with backing from Pelosi is ludicrous.

[bullwinkle428]

6. It's like there's a competition to see how regressive they can

make any potential fix to the debt problem! :mad:

[DCKit]

8. It'll catch on when the (R)s realize it's a regressive tax and shifts the burden to workers.

The wealthy have had the most benefit from BushCo*'s wars and deficit spending policies, but they sure as hell don't want to pay the tab. The second the Republicans can figure out how to hang this albatross around the neck of the Obama Administration ("We hate it, but the Demoncrats have left us no option), it's a done deal.

[Amerigo Vespucci]

12. A National Sales Tax was at the center of Huckabee's "platform."

The only reason the Republicans are yelling about this is the fact that the rumblings are coming from the Obama administration.

Virtually the ONLY Republican who remained non-committal on this during the 2008 election was McCain, and I believe that was because he knew what a fiasco it would be.

[ProdigalJunkMail]

17. you are woefully uninformed...

the national sales tax or fair tax or whatever it is called was a replacement for the current structure...VAT would be an ADDITION...

sP

[Hannah Bell]

9. More regressive taxes = more taxation of the bottom 95%, less of the top 5%,

= more economic decline in the USA.

[Johonny]

13. I agree

[laughingliberal]

24. Yep. Which is exactly why they will probably do this.

Today's politicians never waste an opportunity to find a solution which protects those at the top at the expense of the rest of us.

[Skink]

11. Internet sales tax.

You pay it when you walk in a store why not online?

[ProdigalJunkMail]

15. apples and oranges

you do not pay a federal tax on any sale...you pay a state tax.

sP

[Skink]

23. It's the states that need the money.

Let them collect it and lower all other sales taxes.

Texas is getting ready to open casinos because we are scik of huge chunks of money leaving the state.

[Captain Hilts]

20. I actually agree with this. nt

[Lance_Boyle]

14. Wait, the Rs are AGAINST it? Isn't it exactly what they propose as a "fair tax?"

I guess to bring them onboard with their own idea Volcker would need to also advocate dropping the income tax...

[ProdigalJunkMail]

16. nope...not even close...

fair tax was a replacement of the existing tax structure and was not based on value add. this is a tax IN ADDITION to federal income taxes...

sP

[Lance_Boyle]

18. To be fair, though, 'fair tax' IS a VAT, or natl. sales tax.

The difference is "augment" v "replace" the existing tax structure. So Volcker is, technically, supporting at least half of the plan. ;-)

[ProdigalJunkMail]

21. not really...

VAT applies to every 'value added' transaction...the fair tax only applied to retail sales. VAT means a product is taxed several times through its creation...either way...whatever...

[Statistical]

29. Fair Taxes and Sales Taxes are not VAT.

They apply once and only at retail level. VAT is far more insidious and helps to hide the true amount of tax paid.

Iron ore company sells iron ore to steel plant - VAT paid and now has raised effective price of iron.
The more expensive iron is made into steel and the steel is sold to Chevy - VAT paid and now has raised effective price of Steel.
Chevy uses steel to build a car (which is more expensive because of VAT on both iron & steel) and sells it to a Dealer - VAT has no been applied again.

You buy the car and pay VAT listed however you have also paid VAT on every intermediate step which isn't listed and is included in cost of product.

So not only are you paying taxes the price of the good has gone up too.

VAT is about the most regressive tax you could possibly imagine. The only thing more regressive would be a hypothetical "poor tax". If you make less than $50K you pay 20% "poor tax".

[Captain Hilts]

19. Ontario is about to add 7% to its sales taxes. In June I believe. nt

[SidDithers]

30. Sort of...

On July 1, 2010, Ontario will move to a Harmonized Sales tax of 13%. It's an amalgamation of the 5% Goods & Service Tax (federal) and the 8% Provincial Sales Tax.

On the vast majority of items, we already pay 13% tax. On certain items, particulary for businesses, we only pay the GST, and are PST exempt. That's gonna change, and my business will now have to charge 13% HST on our sales, and pay 13% HST on our purchases.

But, the HST is a net tax. So my remittance to the govt will be the total HST I collected, less credit for the HST I paid. I didn't get credit for PST paid in the old system.

Sid

[Romulox]

22. A massive new increase in regressive Federal taxes to keep the party rolling?

"This is relevant to my interests!"

[laughingliberal]

25. +1000 nt

[yodoobo]

27. "The VAT suggestion was immediately met with outrage by Republicans. "

Sounds like it is something we should definitely do then.

[area51]

28. Why would we need a VAT,

as another poster said, if we cut back on military spending? There's no reason to keep throwing our tax dollars away at the MIC.

And for the nazi party member Brian Walsh who said:

"... the Obama White House would advocate a European-style tax to help finance their European-style government health-care plan,"

Wow, all of a sudden we're going to transition to the right to basic health care paid for out of our taxes, instead of the DINO congress mandate to buy unregulated insurance that won't pay for jack shit and denies claims, which leads to people's deaths? NOT.

[Statistical]

31. ESINO "European Style in Name Only"

They want high European taxes to transfer wealth from poor to shareholders via our private mandate which will be called a "European style govt healthcare plan".

All of the cost and none of the benefit, well unless you are a shareholder. :(

[bamacrat]

32. We are in this situation because of Democrats reckless spending agenda?

Republicans have no shame at all, we are in this mess because of W, pure and simple his agenda his government along with republican control of both the house and senate for so long. Unpaid tax cuts for the rich, unpaid wars, unpaid everything. It wasnt the dems. I have a feeling the pukes fucked the economy on purpose to turn the stupids against dems for good. Mess it up then blame it on the people who are trying to fix it.

[Odin2005]

33. More Corporatist BS!

[lumberjack_jeff]

34. It's unpopular because it's stupid. n/t

[MrCoffee]

35. How about a Droopy Dog Jowls Tax?

That is one unflattering picture.

[MadHound]

36. More stupid shit, instead of more taxes, how about cutting military and war spending?

Oh, yeah, we can't touch those sacred cows:eyes:

Honestly, who does Obama think is going to vote for him in 2012? He keeps pissing off huge segments of his base and society at large. So where does he think he's going to get votes from?

[Silent3]

37. How about progressive rather than regressive tax increases...

...like higher capital gains taxes, higher, better-enforced taxes on high incomes, cutting a few corporate tax loopholes, and cutting corporate tax SUBSIDES for big corporations while we're at it?

Do all of that first, then talk to me about whether we need more sales tax.