The 2012 GOP Platform has been officially released and you may be surprised to find the Republicans in agreement with the Democrats that the time has come to implement a Value-Added Tax (VAT) scheme in the United States. From the platform-

In any restructuring of federal taxation, to guard against hypertaxation of the American people, any value added tax or national sales tax must be tied to the simultaneous repeal of the Sixteenth Amendment, which established the federal income tax.

Once thought to be politically unfeasible, the repeal of the Sixteenth Amendment may be in play should Mitt Romney win election. Seems that both sides have seen the light that the VAT is the way to go to raise tax revenue just as the European model has illustrated for decades. It’s taken until now for both sides to see a way to sell it to the American people. Fairness is the motto here. It’s a winner for both sides to lay claim to and still stay on message. The left can use it in their class warfare verbage and the right can use it along the lines of their unfair income tax motto. It takes just the right mix to pull this off and America seems primed to buy into the sales pitch from both sides and see it as an opportunity to screw the other guys.

America will rue the day if this gets done. It will start out rather innocuously enough. It will have to if it is to garner the political capital required to sell repealing the Sixteenth Amendment. It will be easy enough to follow the Euro’s and systematically raise rates down the road as the public will be powerless to stop it. Make no mistake, the VAT is fully intended to increase government revenue across the board. You’ll just feel better about it when your brethren are getting equally stiffed.

It certainly won’t end with the VAT. A national sales tax will come. An internet sales tax is already coming soon. The point is that it will be much easier to lay and then increase taxes without as much transparency as we have now with the income tax.  The VAT is both regressive and a consumption tax so it will cover all income classes. It’s already in place in over 100 countries worldwide and has a track record of destruction that is unmatched. The worst part? Americans will embrace it as a way to be fair. You’ll ask for the shellacking that lies in wait for you.

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5 thoughts on “Democrats and Republicans agree to bring the VAT to America

  1. Damn, my friend! You sure know how to ruin a guy’s day. This is terrible news! Here in Venezuela we have a 15% VAT. It is a horrible burden on 80% of our population who barely earn enough to eat. Spain, which currently has 53& unemployment for those 25 years of age and under, just raised their VAT from 18% to 21%. Unfricking believable!

    I can see how Americans might be foolish enough to fall for this to get rid of the IRS. I hope not! But, if they do, I hope they, at the very least, insist that it is tied to the projected GDP at say 18% of it. And, that it could only be raised in times of emergency with a super majority of 75% of both Houses and then only with a two year maximum sunset provision. Extention would also require a super majority. A VAT tax is horrinly regressive and wouuld be a terrinle burden for those least able to pay. Surely there is a better way.

    BTW, I hope your prepartions for the future are going well and I hope they include an accumulation of physical gold and/or silver.

    Stay well, my friend! Hard times are coming.

  2. Jim,

    I like your thinking about plenty of checks and balances on the VAT rate. However, I see a VAT implementation for what it is, a way to increase revenue. Period. If left and right can actually come together on this to get the 16th repealed, they’ll never do it by tying their hands with airtight roadblocks against raising it. Particularly when it comes to the Republicans. It’s their dirty little secret. Everybody knows the left loves tax revenue for entitlements, but the GOP wants power and control equally and revenue is the ticket to it.

    Oh, the prep is going as well as can be expected. I’ve owned precious metals for years and have never bought any pieces of paper that just say I own it. But keep a cot open for me in the back room as I may have to come visit you for awhile when the SHTF here anyway.

  3. There willl always be room for you here, my friend. If worde comes to worse here, we will take por strong young sons and their families and go off into the jungle and build stick and mud houses and live off of the land. In third world countries, the poor are never aware of the world’s economic situtation. Their lives do not change at all.

  4. Like you said,the VAT is a consumption tax. Remember these two old sayings…

    * Consumer spending accounts for 70% of the economy. (Consumption)

    And

    If you want less of something, such as lumber , increase taxes on it.

    So, a VAT will be a big drag on the economy.

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