Obama demanding a VAT for the USA

[The Age Wave]

link

Obama suggests value-added tax may be an option

WASHINGTON – President Barack Obama suggested Wednesday that a new value-added tax on Americans is still on the table, seeming to show more openness to the idea than his aides have expressed in recent days.

Before deciding what revenue options are best for dealing with the deficit and the economy, Obama said in an interview with CNBC, "I want to get a better picture of what our options are."

After Obama adviser Paul Volcker recently raised the prospect of a value-added tax, or VAT, the Senate voted 85-13 last week for a nonbinding "sense of the Senate" resolution that calls the such a tax "a massive tax increase that will cripple families on fixed income and only further push back America's economic recovery."

For days, White House spokesmen have said the president has not proposed and is not considering a VAT.

"I think I directly answered this the other day by saying that it wasn't something that the president had under consideration," White House press secretary Robert Gibbs told reporters shortly before Obama spoke with CNBC.

After the interview, White House deputy communications director Jen Psaki said nothing has changed and the White House is "not considering" a VAT.

Many European countries impose a VAT, which taxes the value that is added at each stage of production of certain commodities. It could apply, for instance, to raw products delivered to a mill, the mill's production work and so on up the line to the retailer.

In the CNBC interview, Obama said he was waiting for recommendations from a bipartisan fiscal advisory commission on ways to tackle the deficit and other problems.

When asked if he could see a potential VAT in this nation, the president said: "I know that there's been a lot of talk around town lately about the value-added tax. That is something that has worked for some countries. It's something that would be novel for the United States."

"And before, you know, I start saying 'this makes sense or that makes sense,' I want to get a better picture of what our options are," Obama said.

He said his first priority "is to figure out how can we reduce wasteful spending so that, you know, we have a baseline of the core services that we need and the government should provide. And then we decide how do we pay for that."

Volcker has said taxes might have to be raised to slow the deficit's growth. He said a value-added tax "was not as toxic an idea" as it had been in the past.

Since then, some GOP lawmakers and conservative commentators have said the Obama administration is edging toward a VAT.

[Хahar 🤔]

Gee, that title's not misleading at all.

[War on Want]

I wish Obama wanted a VAT.

[Obnoxiously Slutty Girly Girl]

I wish Obama wanted a VAT.

Why, you like having more of the money you worked hard for taken away by the government?

[RI]

Now is a terrible time to introduce such a tax that comes with no obvious benefits. Simply trying to pay down the defecit should not be a priority as long as we are in a recession with high unemployment.

Not that I think they'll seriously try to implement it. Hopefully.

[Marokai Backbeat]

Thread title: "Obama demanding a VAT for the USA!"

Thread substance: "I know that there's been a lot of talk around town lately about the value-added tax."

Mind = Blown

[Хahar 🤔]

I wish Obama wanted a VAT.

You like regressive taxation?

[Frodo]

For political as well as economic reasons, it would be advisable that any comprehensive deficit/debt reduction efforts (including the imposition of VAT) should be postponed until after President Obama's re-election -namely until 2013.  By that point the economy should have recovered enough to absorb any possible tax increases as well as necessary pullbacks in government stimulus spending. 

[War on Want]

I wish Obama wanted a VAT.

You like regressive taxation?

No, but as long as we are going to have regressive taxation in this nation, I will support a VAT over a retail sales tax.

I don't see what the problem with regressive taxation is if the increased revenue goes towards improved services, economic investment in the poor, the improvement of infrastructure etc. Not to mention essentials could be mostly exempted from the VAT and these essentials are exempted from the VAT in many countries that use it. Anyways Canada has a low VAT tax, where the rate is similar to our sales taxes and it has been a success.

[Torie]

Some Dems are beginning to realize that to get to the level of federal involvement that they desire,  the working and middle class will have to pay more taxes, and that means a national sales tax. It is good that this issue is coming up, so folks can discuss whether they are willing to pay more, for more government.

[Obnoxiously Slutty Girly Girl]

I wish Obama wanted a VAT.

You like regressive taxation?

No, but as long as we are going to have regressive taxation in this nation, I will support a VAT over a retail sales tax.

False dilemma.

[Smash255]

Demanding = option on the table??   Hmmm

Interesting thread title there......

I had to double check to make sure it wasn't Vanderblubb masquerading as another poster.

[Хahar 🤔]

I wish Obama wanted a VAT.

You like regressive taxation?

No, but as long as we are going to have regressive taxation in this nation, I will support a VAT over a retail sales tax.

We don't have a federal sales tax at this point, and I'd like to keep it that way.

[War on Want]

I wish Obama wanted a VAT.

You like regressive taxation?

No, but as long as we are going to have regressive taxation in this nation, I will support a VAT over a retail sales tax.

We don't have a federal sales tax at this point, and I'd like to keep it that way.

There are 5 states without a sales tax, and all 5 have very small populations so that doesn't mean much. I would rather that the federal government streamline the sales tax, so it is the same in all states and turn it into a VAT, which is preferable to a sales tax if it is kept low like in Canada.

[I spent the winter writing songs about getting better]

I wish Obama wanted a VAT.

You like regressive taxation?

No, but as long as we are going to have regressive taxation in this nation, I will support a VAT over a retail sales tax.

We don't have a federal sales tax at this point, and I'd like to keep it that way.

There are 5 states without a sales tax, and all 5 have very small populations so that doesn't mean much. I would rather that the federal government streamline the sales tax, so it is the same in all states and turn it into a VAT, which is preferable to a sales tax if it is kept low like in Canada.

That can't be done because the feds can't force states to repeal their sales taxes. And if all states did that would cause even more issues. A VAT can't work in a country as decentralized as the US.

[War on Want]

I wish Obama wanted a VAT.

You like regressive taxation?

No, but as long as we are going to have regressive taxation in this nation, I will support a VAT over a retail sales tax.

We don't have a federal sales tax at this point, and I'd like to keep it that way.

There are 5 states without a sales tax, and all 5 have very small populations so that doesn't mean much. I would rather that the federal government streamline the sales tax, so it is the same in all states and turn it into a VAT, which is preferable to a sales tax if it is kept low like in Canada.

That can't be done because the feds can't force states to repeal their sales taxes. And if all states did that would cause even more issues. A VAT can't work in a country as decentralized as the US.

I know but it would be the ideal imo. Because of issues like these, I dislike federalism.

[I spent the winter writing songs about getting better]

I wish Obama wanted a VAT.

You like regressive taxation?

No, but as long as we are going to have regressive taxation in this nation, I will support a VAT over a retail sales tax.

We don't have a federal sales tax at this point, and I'd like to keep it that way.

There are 5 states without a sales tax, and all 5 have very small populations so that doesn't mean much. I would rather that the federal government streamline the sales tax, so it is the same in all states and turn it into a VAT, which is preferable to a sales tax if it is kept low like in Canada.

That can't be done because the feds can't force states to repeal their sales taxes. And if all states did that would cause even more issues. A VAT can't work in a country as decentralized as the US.

I know but it would be the ideal imo. Because of issues like these, I dislike federalism.

Federalism is also why California can legalize marijuana and some states can have gay marriage. Works both ways. If it wasn't for this any serious progress on any issue would be held up by the south.

[Obnoxiously Slutty Girly Girl]

I wish Obama wanted a VAT.

You like regressive taxation?

No, but as long as we are going to have regressive taxation in this nation, I will support a VAT over a retail sales tax.

We don't have a federal sales tax at this point, and I'd like to keep it that way.

There are 5 states without a sales tax, and all 5 have very small populations so that doesn't mean much. I would rather that the federal government streamline the sales tax, so it is the same in all states and turn it into a VAT, which is preferable to a sales tax if it is kept low like in Canada.

That's an incredibly stupid idea. The states that have sales taxes should be working on repealing them, not letting fedgov expand them.

[MODU]

If you were to abolish the existing tax structure all together and replace it with VAT-only structure, that would be one thing.  However, you know Congress would only add the VAT to the existing tax system as a way to soak even more money out of you.  The first I could handle, the second would be completely unacceptable.

[Badger]

Increased income taxes on higher brackets (including creation of $400k and $1 mil brackets) > x1000 a VAT.

[The Age Wave]

Increased income taxes on higher brackets (including creation of $400k and $1 mil brackets) > x1000 a VAT.

Agree X 1000!

[Zarn]

Increased income taxes on higher brackets (including creation of $400k and $1 mil brackets) > x1000 a VAT.

Agree X 1000!

Cutting spending is x1000000 better than any tax.

[The Age Wave]

Increased income taxes on higher brackets (including creation of $400k and $1 mil brackets) > x1000 a VAT.

Agree X 1000!

Cutting spending is x1000000 better than any tax.

They aren't mutually exclusive.

[Zarn]

Increased income taxes on higher brackets (including creation of $400k and $1 mil brackets) > x1000 a VAT.

Agree X 1000!

Cutting spending is x1000000 better than any tax.

They aren't mutually exclusive.

No, but taxes should not be raised simply to pay for things we do not need.

[Badger]

Increased income taxes on higher brackets (including creation of $400k and $1 mil brackets) > x1000 a VAT.

Agree X 1000!

Cutting spending is x1000000 better than any tax.

Cutting spending is a red herring. There's going to be a substantial expenditure by government. Whether the proper amount is 1 Trillion or 1 billion it's still going to require taxes. The key question is then is how to structure the public's tax bill and, again, a progressive income tax beats the bejesus out of a regressive VAT tax both economically and in terms of fairness.