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Could America be set for a VAT?

December 2, 2008 by  

Many countries use a VATBarack Obama won the November presidential election with questions still lingering for many about whether his tax proposals would actually benefit the average American – particularly as the economy sinks into a recession.

Now, an article in Fortune has suggested that the U.S. may be forced to impose a value-added tax (VAT) in order to raise needed funds.

In a VAT system, tax is applied to a product at each stage of its production, with suppliers and sellers sharing the tax burden with consumers.

Many countries around the world already employ a VAT. According to the publication, nearly half of the revenue raised by the French government is derived from the tax.

Some say that America could soon be facing the same problems that other nations saw in the past.

"The bottom line is that the income tax cannot support the level of spending that’s projected, something other countries faced years ago," Robertson Williams of the Tax Policy Center told the news provider.

However, others point out that when the government increases a VAT, it can slow down a country’s economic growth. Meanwhile, the middle class may end up paying more on staples such as food and energy, which also may stand in the way of growth.
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  • Chris

    The man is sinister, I keep saying that but it’s going to take for us to lose everything before anyone does anything about it. Or maybe everyone is too lazy. Baby boomers, it’s time to go!

  • shenanigan

    We have lost all men and women that had any strength and cater in tthe Republican party. it is a shame when we go after those democrats only to slaps we have made up more lies.

    When vice president Cheney is trying to strenght his role just to keep from going to prison himself. His latest remark is telling the world he is willing to throw the Ex-president Bush to the den of lions just to save his on butt. He trying to show he still have power and will deal unfavorly with those who oppose him.

    President Obama may have hit his high of being a poplar president ,Obama has let all the voters down who voted for a change,by falling into a trap Bush Cheney created. I look for Obama approval rating drop close to half that it is today in the next 2 month. And to think we had such hi-hope for him,as he said he may be a one term president

    l

  • Jane Scroggins

    They are even trying to tax the cows when they break wind so why not?
    Yes a VAT will hurt the middle class but low income workers and retired people will be reduced to doing without food and medicine. No one worries about the poor when discussing a tax like this and they will suffer the most.

  • Marcia

    From start to now Obama is doing anything to bring down the great country. He has not been vetted by anyone in America and he carries a Kenya passport. If he is an American? we do not recognize two nationalize person. He then could not our Presient.

    How can anyone of retirement income pay more taxes. I made a great income when I was working and most of it went to the Stock Market and you all now that wiped me out. I was able to save $6,000 out of a million investments. I am on Social Security and I cannot make ends meet. Baby Boomers gather with us and fight this man that is out to ruin this country. Join http://www.americangrandjury.com and then join any one that is fighting for our Constition. WE know that Obma and the congrss does not repect our Constitution altho they took and otha to proect and defend our Consittuion.

  • misguided

    This countries spending has been out of control for 40 years. We read that the US will do anything to stay on top. Even if it means taking every dime we make. Congress is writing a bill to stop people from getting a loan on their 401K. The Supreme court killed the 4th admentment we read that on yesterday. I guess even if we start keeping money at home now they can kick out doors downa and take that too. The Fed Gov don’t care about you or me. They will not go down without taking us all down with them.

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