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Heads up a 25% V.A.T. coming our way in the US.

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PTsideshow:
Heads up people here comes the part about we aren't going to tax the little guy! :bugeye:
Our Government is planning on helping Us here in the US with a 25% V.A.T. and possible national sales tax. Along the $3,000 to $4,000 from  the Cap and Trade carbon use fees. That will add to the utility costs for any carbon burning generating plant household. And that is each household.

They have a Senator that is saying that we need to join the rest of the world in having a Value added tax on all goods and services. Around 25% should be good to start. It will be another case of "We are from the government, and we are here to help you"! They are trying to figure out how to get it by the tax payers before we know about it  :doh:

Man they wanted change and they are getting it  :lol: :lol: :lol: :lol:

Man I love my country, buy fear my government!
glen

PTsideshow:
http://www.washingtonpost.com/wp-dyn/content/article/2009/05/26/AR2009052602909.html?hpid=topnews
Here is one article on it.
glen

John Hill:
Relax guys!  I dont know if such a thing will come to pass or not but I do know a 25% VAT, GST, or whatever is a very high rate.

Now the thing about such consumption taxes is that properly implemented they work very well.  Everybody pays the tax,  it does not effect savings, it is almost impossible to avoid and best of all the administrative overheads are very low.

Here in New Zealand we have had GST for a couple of decades and in the same time have scrapped almost all other taxes except income tax.  We have almost no sales tax (maybe none at all) and very little in the way of duty on anything imported, we do however still have excise taxes on petrol, alcohol and tobacco.

Collection is easy, everyone who is in any business just calculates 12.5% of what they get in and subtract from that 12.5% of their outgoings and the difference they give the tax man.  The end user is the one who actually pays.   

Unlike other taxes consumption taxes are difficult to avoid  so everyone pays and there is no huge beurocracy to administer the collection of it.

OK, I would rather we had no taxes at all but GST is a HUGE improvement on what I remember went before.


John
The Artful Bodger

Darren:
in the UK VAT is considered a curse, currently at 15%, was recently 17.5% but they drooped it to help boost the economy,  :lol: :lol: :lol: it's a joke. But will go up to an even higher rate later.

Personally I think the whole thing was engineered in order to raise tax in the long term without public backlash.

It's not only costs everyone, but those who collect it are burdened with the job of the paperwork which just adds to the workload for free.

Most businesses try to avoid it like the plague but it's not easy. It can also land small businesses in a lot of hot water if they don't keep an eye on the earnings threashold.

Some have even lost their businesses and homes over it....

I wouldn't call it a good thing at all. Not if you are self employed at any rate.

PTsideshow:
That may all be true, but in addition to they also want to raise the national tax on beer/wine and other beverages. Add  another layer of tobacco tax. Start charging for miles driven in addition to the gas tax. They love the so called fat tax! a tax on sugar and fat in soft drinks and junk food. in addition to all the others I mentioned.

In the US it seems that, that they talk about doing away with a tax or fee. But never seem to come to do it. With the housing prices dropping like a rock, you would think that the local and state property taxes would drop. The housing prices fell in our area, the property taxes went up. When they nailed a local government operative they said they had to change it, because they have an state of emergency.

I think we are in for a whole lot of "Depends on what your definition of is, Is"
glen

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