Home
In this issue
April 9, 2014

Jonathan Tobin: Why Did Kerry Lie About Israeli Blame?

Samuel G. Freedman: A resolution 70 years later for a father's unsettling legacy of ashes from Dachau

Jessica Ivins: A resolution 70 years later for a father's unsettling legacy of ashes from Dachau

Kim Giles: Asking for help is not weakness

Kathy Kristof and Barbara Hoch Marcus: 7 Great Growth Israeli Stocks

Matthew Mientka: How Beans, Peas, And Chickpeas Cleanse Bad Cholesterol and Lowers Risk of Heart Disease

Sabrina Bachai: 5 At-Home Treatments For Headaches

The Kosher Gourmet by Daniel Neman Have yourself a matzo ball: The secrets bubby never told you and recipes she could have never imagined

April 8, 2014

Lori Nawyn: At Your Wit's End and Back: Finding Peace

Susan B. Garland and Rachel L. Sheedy: Strategies Married Couples Can Use to Boost Benefits

David Muhlbaum: Smart Tax Deductions Non-Itemizers Can Claim

Jill Weisenberger, M.S., R.D.N., C.D.E : Before You Lose Your Mental Edge

Dana Dovey: Coffee Drinkers Rejoice! Your Cup Of Joe Can Prevent Death From Liver Disease

Chris Weller: Electric 'Thinking Cap' Puts Your Brain Power Into High Gear

The Kosher Gourmet by Marlene Parrish A gift of hazelnuts keeps giving --- for a variety of nutty recipes: Entree, side, soup, dessert

April 4, 2014

Rabbi David Gutterman: The Word for Nothing Means Everything

Charles Krauthammer: Kerry's folly, Chapter 3

Amy Peterson: A life of love: How to build lasting relationships with your children

John Ericson: Older Women: Save Your Heart, Prevent Stroke Don't Drink Diet

John Ericson: Why 50 million Americans will still have spring allergies after taking meds

Cameron Huddleston: Best and Worst Buys of April 2014

Stacy Rapacon: Great Mutual Funds for Young Investors

Sarah Boesveld: Teacher keeps promise to mail thousands of former students letters written by their past selves

The Kosher Gourmet by Sharon Thompson Anyone can make a salad, you say. But can they make a great salad? (SECRETS, TESTED TECHNIQUES + 4 RECIPES, INCLUDING DRESSINGS)

April 2, 2014

Paul Greenberg: Death and joy in the spring

Dan Barry: Should South Carolina Jews be forced to maintain this chimney built by Germans serving the Nazis?

Mayra Bitsko: Save me! An alien took over my child's personality

Frank Clayton: Get happy: 20 scientifically proven happiness activities

Susan Scutti: It's Genetic! Obesity and the 'Carb Breakdown' Gene

Lecia Bushak: Why Hand Sanitizer May Actually Harm Your Health

Stacy Rapacon: Great Funds You Can Own for $500 or Less

Cameron Huddleston: 7 Ways to Save on Home Decor

The Kosher Gourmet by Steve Petusevsky Exploring ingredients as edible-stuffed containers (TWO RECIPES + TIPS & TECHINQUES)

Jewish World Review April 26, 2010 / 12 Iyar 5770

The Silent Killer: Obama's VAT Proposal

By Dick Morris & Eileen Mc Gann




http://www.JewishWorldReview.com | When conservatives like Neal Boortz proposed the "fair tax" (a levy on consumption, not on income), we should have known that the Barack Obama left would seize on the proposal not as Boortz intended it to be — a replacement for the income tax — but as an addition to it. Now Obama has let it be known that the value-added tax, or VAT, is "on the table" as he casts about for taxes to lock in his gigantic levels of federal spending.

At stake, of course, is our free-market system. When Obama took office, federal, state and local spending accounted for 30 percent of gross domestic product. Now it is up to 35 percent, and when health care is fully implemented, it will rise to above 40 percent. But taxes are still below 30 percent. The difference is the deficit, now grown to 10 percent of our GDP.

If our government is to continue spending 40 percent of our GDP, we will morph into the European model of a socialist democracy. But if we can roll the spending back to 30 percent, while holding taxes level, we will retain our free market system.

In 2011, we will have three choices:

— Raise taxes up to 40 percent.

— Cut spending down to 30 percent.

— Or half and half.

Now Obama proposes the ultimate step to convert us into a European nation: the VAT.

The VAT is levied at each stage of a commercial transaction. So the raw material seller charges the manufacturer, who then adds a new tax onto the price when he sells his finished product to a retailer, who then adds on a new levy when he sells it to a customer.

And the customer doesn't know it.


Letter from JWR publisher

When you buy something for $10 and the clerk asks for "$10.65, please," you know that you are paying a 6.5 percent sales tax. But when $4 of hidden value-added taxes cause the item to cost $14, you pay the $14 without knowing that it includes the extra tax.

A key reason Europeans stay leftist is that they don't realize how much they are paying in taxes since it is hidden in the price of the products they buy.

And, in Europe, as Obama proposes in the U.S., the VAT does not replace the income tax, it just supplements it.

High VATs and high taxes on the top bracket of income exist unhappily side by side in Europe. Value-added taxes average 20 percent on the continent, while top income tax rates are all still in the 40-50 percent range.

The battle over how to pay down the deficit is looming in Washington. Some liberals boldly promise to raise taxes and proclaim their willingness to take the heat for the decision. But now Obama has offered them a more palatable alternative — raise taxes by increasing the VAT and hide it from the public by burying the tax into the purchase price of the product.

Left in the dust, of course, is Obama's signature pledge not to raise taxes on the "middle class." The VAT, which is levied every time anyone buys anything, falls on every citizen.

Of course, Obama could keep his pledge by the simple expedient of requiring everyone who makes more than $200,000 to be branded on their forehead with a big $ sign so that the clerk will know to charge him the VAT. But, perhaps that might be a bit too much, even for him!

=<<

Every weekday JewishWorldReview.com publishes what many in the media and Washington consider "must-reading". Sign up for the daily JWR update. It's free. Just click here.



BUY THE BOOK

Click HERE to purchase it at a discount. (Sales help fund JWR.).


Comment by clicking here.



Dick Morris Archives


© 2009, Dick Morris

Columnists

Toons

Lifestyles