The ‘shell game’ commences. As it’s that season again for most folks to reconcile their tax filings, (and we’re hoping) for actual ‘Tax Reform’ in congress, it’s both interesting and typical for the bureaucrats in DC to be discussing ‘VAT’. Which stands for “Value Added Tax”. A laughable Nu-speak/inversion term, as there is absolutely NO ‘value’, just TAX. And, in case you haven’t been paying attention we are in fact “Taxed Enough Already”!
Here is the definition of VAT; “A value-added tax (VAT) is a fee assessed against businesses at each step of the production and distribution process, usually whenever a product is resold or value is added to it. Producers and distributors typically pass the cost of the VAT on to the final consumer in the form of price increases. Tax is added to a product’s price each time it changes hands until delivery to the customer takes place, when the final tax is paid. VAT has also been referred to as a sort of national sales tax, though it functions very differently”
Or in other words, each time a product moves through the production line, and it’s “value” increases in steps towards it’s final retail price, the item will have a fractional ‘tax’ levied upon it until it reaches it’s final retail outlet for sale to all of us consumers. The term ‘Value Added Tax’ is cover for the net effect of ‘tax compounding’ added to the ultimate sales price. And of course then comes the ‘State’ Sales Tax on the final price of the item.
So some congressional tax policy “El-lites” say they are willing to talk about going along with a potential reduction in the Corp tax rates, in exchange for the implementation of a ‘VAT’ system. What they give with one hand, they will take away with the other hand, and then declare victory for the consumers/tax payers (please hold your laughter and anger).
This is NOT just us ‘ranting’ about this concept. In a recent article by Nicholas Ballasy, he quotes highly positioned bureaucrats in their committee discussions about potential ‘tax reform’ as follows;
“Rep. Joe Crowley (D-N.Y), vice chairman of the House Democratic Caucus and member of the House Ways and Means Committee, told PJM that he does not think Congress should halve the current 35 percent corporate tax rate as President Trump has suggested”
“Crowley also said he is willing to discuss a Value Added Tax (VAT) as part of a comprehensive tax reform package to see “what effect that will have” in the United States”
You see where they’re going with this, they’re going to ‘barter’ instead of just lowering the tax burden. They will be willing to ‘reduce this, but only if they can raise that’. Net effect, the people will probably end up giving more of their precious and finite labor energy to the govt than they do now, even though it will be sold as ‘sweeping reform’.
To reach the entire article by Nicholas Ballasy (CLICK HERE)
“No Matter How Much They Take It’s Never Enough”