Friday, April 09, 2010
VAT talking point
For some reason the brand-R talking point heads are focusing this week on the 'horrible' possibility that Obama might impose a value-added tax.
Neal Boortz carefully and lucidly illustrated how the VAT works; how it takes a little slice at each stage of production from raw material through factory. True, but this is exactly why we shouldn't worry about the effect of a VAT.
WE DON'T PRODUCE ANYTHING HERE, so there aren't any stages of production to tax.
Except for food and Toyotas, everything we buy is made in China.
Since food is typically exempt, a VAT would yield little net revenue in modern America. Thus it's unlikely to happen.
I'd be opposed to VAT for a more 'subjunctive' reason: if we had it in place, manufacturers would have yet one more excuse to stay in China. And moving production back here is the only way to fix this unfortunate land.
Come to think of it, this should be the best reason for Republicans to support the VAT, since they want all production to stay in China.
= = = = =
For the record, I strongly support replacing the income tax with a plain national sales tax, charged at retail endpoint along with state sales taxes. This would make life harder for businesses that function purely by selling, and easier for both individual and corporate producers. It would also encourage saving and discourage borrowing.
¶ 11:23 AM
Neal Boortz carefully and lucidly illustrated how the VAT works; how it takes a little slice at each stage of production from raw material through factory. True, but this is exactly why we shouldn't worry about the effect of a VAT.
WE DON'T PRODUCE ANYTHING HERE, so there aren't any stages of production to tax.
Except for food and Toyotas, everything we buy is made in China.
Since food is typically exempt, a VAT would yield little net revenue in modern America. Thus it's unlikely to happen.
I'd be opposed to VAT for a more 'subjunctive' reason: if we had it in place, manufacturers would have yet one more excuse to stay in China. And moving production back here is the only way to fix this unfortunate land.
Come to think of it, this should be the best reason for Republicans to support the VAT, since they want all production to stay in China.
= = = = =
For the record, I strongly support replacing the income tax with a plain national sales tax, charged at retail endpoint along with state sales taxes. This would make life harder for businesses that function purely by selling, and easier for both individual and corporate producers. It would also encourage saving and discourage borrowing.
¶ 11:23 AM
