What a joke.The value added tax?Somehow,I don't think embedding a tax on the cost of a good or service is in any way adding value.We can thank the French for this stellar idea in hiding a tax in the price so that consumers don't even see it.Won't show up on the receipt,out of sight,out of mind.
With the automakers already being forced to pass on the cost of the carbon tax,why not add on 10% more in the VAT tax?The only profitable lines are already the more expensive and this will just bump them out of range forcing potential customers to drop down to the cheaper green cars with less profit margin for the automakers.
The French started at 5% and eventually bumped it to 20% as it accounts for over 50% of their tax revenue.You can't even join the European Union with any less than a 15% VAT in place.
The key point is the VAT is not replacing any existing sales tax as it's designed to.We have no national sales tax to replace.And you won't see the Congress repeal the 16th Amendment and eliminate the income tax.This is strictly a National Health Care tax under the guise of a sales type tax.The Dems can't call a spade a spade because it won't sell.
The VAT tax is designed to only tax the value added at each stage of production and depending on the assessment method used will add more accounting requirements.There are lots of other details such as evasion and cash jobs increasing.
Also keep in mind the Dems want a high earner income tax increase to go along with the VAT tax and your state and local sales taxes would still be in place.
It should be an interesting battle to determine if any Constitutional authority exists to impose this guaranteed economy killer.More to come...