Calls for new VAT tax prove unpopular with both Dems, GOP

[The Northerner]

A range of economists have come to Capitol Hill to sing the praises of a value-added tax (VAT), but their song is falling on deaf ears.

While some elected officials have pledged to keep an open mind about the VAT, many lawmakers from both parties remain far from convinced, with concerns ranging from how regressive VATs can be to the prevalence of consumption taxes elsewhere in the world.

“It’s the worst of all worlds,” said Rep. Tom Price (R-Ga.), a member of the House Ways and Means Committee. “The American people don’t want to be Western Europe.”

That hasn’t stopped economists, including some who once worked for Republican administrations, from arguing in favor of the VAT’s merits.

Read more: http://thehill.com/homenews/house/147431-calls-for-new-vat-tax-prove-to-be-unpopular-with-both-dems-gop

[bluestateguy]

1. A VAT would be regressive

It is not a progressive idea.

[JBoy]

3. You can make it more progressive by exempting necessities

In Canada, for example, most food is exempt. You could do the same for heating fuel, children's clothing, etc.

[rfranklin]

2. Yes, it favors their ideology...that's why they keep promoting it...

Once again, tax the rich and the problem is solved.

[taught_me_patience]

4. I support a VAT as a way of taxing corporations

Corporations will have to bear some of the cost of the VAT by reducing their margins.

[AndyTiedye]

5. You Tax Corporations by Taxing Corporations

VAT is really more of a sales tax, and as such is inflationary and regressive.
Exempting food helps, but the even the poor don't spend all their money on food.