Bush and DeLay pushing for National Sales Tax

[BrklynLiberal]

<snip>
WHAT'S ON THE TABLE

If the commission opts for radical change, the most likely alternatives are a national sales tax or a value-added -- or VAT -- tax. Both are considered consumption taxes because they target spending, not income. Income funneled to savings and investment would be exempt from taxation.

A national sales tax would hit consumers at the retail level, just like state and local sales taxes. The VAT is typically imposed on goods and services at each stage of production. For example, a manufacturer who buys raw material and sells a finished product to a retailer would pay a tax on the product's markup. Taxes accumulated during the production process would be built into the final retail price.

Sales-tax advocates, whose ranks include House Majority Leader Tom DeLay of Texas, see Bush's initiative as a chance to build public support for their idea. Legislation to create a national sales tax already has been introduced in Congress. The proposal would impose a 23 percent tax on all retail sales to replace revenues lost by eliminating the income tax and the 12.4 percent payroll tax that funds Social Security. Taxpayers would get monthly rebate checks from the government to offset taxes on the bare necessities, such as food and drugs.

A single taxpayer would get a $178 monthly rebate, sponsors say. A couple would get $357. A family of four would get $479. Critics say a sales tax hits the poor hardest, since they spend a larger portion of their income on food, rent and other essentials. On the plus side, a sales tax is probably the simplest to collect.
<snip>

more...
http://www.miami.com/mld/miamiherald/news/nation/10946049.htm?1c

[Warpy]

1. Sure they are

Sales taxes are 100% regressive, meaning they hit poor people who spend all their income a lot harder than they hit rich people who are able to survive very nicely by spending only a fraction of their income.

It's another way of shifting more of the burden of government onto the backs of the people who can least afford it while giving billionaires a largely free ride.

A VAT is especially bad, since everything has a tax added to it at every stage of production. Look at food: wheat would be taxed at planting, at harvest, at storage, at milling, at baking, and again when it gets to the market in the form of bread. That's how a VAT works. The tax may look small, like 1-2% at every stage, but think of how it would add up on complex items like cars...or computers.

Unless they want to exempt necessities like food, clothing, medical care, primary residence, and transportation, it will just be another battle in the class war against working people.

And that's just how those bastards like it.

[muriel_volestrangler]

9. No, that's not how VAT works

because when a business does its tax return, it adds up the VAT it had to pay on the raw materials that went into its process, and subtracts this from the VAT it charged its customers in the finished goods. This difference is what the business actually has to pay to the government. That why it's Value Added Tax - the value added by each business is what gets taxed, not the value of the sales. The idea is that it helps prevent people using 'wholesale' goods for their own use - they have to pay the tax, and then claim it back if they really sell the goods on. It does mean a lot of paperwork, however, since every buisness involved has to do it.

I posted a few days ago here on how VAT works in the UK. The UK exempts basic food, children's clothes, housing, and public transportation (cars and their fuel do attract VAT, along with large fuel duties anyway), and we have a national health service, and VAT still takes a higher proportion from the lowest household incomes than the highest. Don't think that the exemptions would make the tax even, let alone progressive.

[CindyDale]

2. Just shop at the religious thrift stores

You won't have to pay any taxes then.

[asjr]

5. But then they would probably raise their prices. Goodwill

stores have changed their way of pricing and I refer to them as Illwill now.

[oneold1-4u]

7. Tax upon tax is usery

Yes you pay tax even on 2nd hand and every vehicle every time it changes hands. The rotten part is that I can't afford to go touring the world to get the best buys on brand new clothing, cars, yachts, and airplanes without paying any US sales tax!! I cant even afford
to move to Canada or fumbuc edjip!

[Wwagsthedog]

3. With all due respect!

Please don't use caps when referring to "delay". His only claim to fame is as a sexual whatever product. And "bush" is an African land animal related to chimps and whoever, not to denigrate African creatures. ...............Amsterdam is calling.......

[beanball]

4. bush&delay

the evil texas twins.(no caps for the clowns)

[utahgirl]

6. This is aimed

at sales over the internet.

utahgirl

[oneold1-4u]

8. Take for granted

That anything this bunch says is good, will happen next week, because no one has stopped any of of this dowhill roll yet!
We used to say we'd rather be dead than red, but commies have nothing on bush, He has us in the red and almost dead.

[struggle4progress]

10. Why should anyone believe anything W&Co say?

[applegrove]

11. That is why they want the SS changes. Cause how can you raise

the cap on SS when you HAVE NO IDEA WHAT THE INCOME IS OF ANYONE - INCLUDING THE RICH?

A value added tax taxes only value add to something by say WORKING ON IT! That will really help with the employment.

[Babel_17]

12. The Cosa Nostra licks its lips

at the prospect of this.

Bootlegging will be a big business.

Diamonds, gold and high end electronics.

Gas and fuel oil .......... omg, it's hugely profitable now.


And the loopholes will = huge campaign contributions.

Oh, and gov't will have to grow even bigger to regulate this.

The USA isn't Canada or Europe where people politely get in line and fill out paperwork. We're the "Whiskey Rebellion" nation and getting around the VAT will be the new national pastime.

Idiocy.

[Skittles]

13. all I know is if an evil bastard like DeLay is for it

I don't even need to know the details to know it stinks to high heaven for us regular folk

[Zenlitened]

14. Calling all Republicans. How do you like your "conservative legacy" now?

What a riot. A new, nationwide tax. Way to get government off our backs, repukes!