The Democrats are beating the drum for a Value Added Tax (VAT) to pay for the deficit (that in fairness, all administrations have been running up). The new national healthcare system in the US will be enormously expensive and we need to pay for it somehow. $2,000,000,000,000.00 over the next ten years will be expended to pay for the healthcare of roughly 10 million Americans who are currently uninsured – and about the same number of illegal aliens, who will also benefit.
VAT will act more or less like a super-national sales tax. No more free ride for internet purchasers trying to avoid paying state sales tax. If you’re buying something at the point of sale, in California, for example, you’ll pay your 10% sales tax (in Los Angeles) and then another X% VAT that goes to the federal government. “Witness the experience of the European Union. When the 12 largest nations of Europe first began using the VAT in the late 1960s, it averaged a bit over 13%. Today, it averages 20.5% across those same European Union nations — a 54% increase.” (source: IBD)
The net effect is to produce a cash-and-carry underground economy to avoid paying VAST taxes. A black market if you will, of tax free goods. Good for America?