So Herman Cain Tea Party Supporters Have Changed The Flavor of Our TEA – From “Taxed Enough Already” To “Taxing Everything Always”
Posted by Al @ 8:10 amOct 20
Remember when the Tea Party movement, made up of regular fiscally responsible taxpayers, fed up with taxation used to continue the Federal Government largess and incensed over TARP bank bailouts, decided to protest against fiscally irresponsible government management of our country. It was bad enough that we were demonized as racists and haters by the establishment Republicans and Democrats, and the Progressive/Socialist major media outlets. Then when the Republican Establishment couldn’t dissuade the movement from continuing it’s activism, they began the effort of co-opting the Tea Party. With what appeared to be a successful resistance against the co-opting and demonization, I thought the movement was going to remain a sovereign movement fighting for the survival of America. But now comes the most bizarre chapter in the Tea party movement; the acceptance of a new triple-tax plan by Republican Presidential nominee, Herman Cain, which includes a national sales tax or VAT.
SO THE TEA PARTY, WHICH IS AN ACRONYM FOR “TAXED ENOUGH ALREADY”, IS EMBRACING A NEW TAX SCHEME WHICH GIVES THE FEDERAL GOVERNMENT AN EXTRA INCENTIVE TO PERPETUALLY GROW THE FEDERAL GOVERNMENT LARGESS.
So as to not make this an issue about the ignorance of some Tea Party activists, this is a short exercise in the pitfalls of imposing a European-style VAT tax. So you want to become like Socialist Europe? The VAT is a great start. Here are just a few moments in history that should inform a person as to how imposing and stifling a VAT tax is.
Denmark has gone to 25% from 9%, Germany to 19% from 10%, and Italy to 20% from 12%…
In Europe, average government spending was about 30.2% of GDP when VATs began to spread in the late 1960s. Today, those governments are more than 50% larger, with spending of 47.1% of GDP on average. By contrast, U.S. government spending (federal and state) rose to 35.3% from 28.3% as a share of GDP in the same period…The price of a much higher tax burden to finance a cradle-to-grave entitlement state in Europe has been a lower standard of living. VAT supporters should explain why the same won’t be true in America.
…beginning of 2011. Within the European Union, these include the UK – 17.5 per cent to 20 per cent; Portugal – 21 per cent to 23 per cent; Poland – 22 per cent to 23 per cent; Latvia – 21 per cent to 22 per cent; and Slovakia – 19 per cent to 20 per cent…
VAT in Europe, which accounts for 21.4 per cent of the national tax revenues of EU member states, a rise of 12 per cent since 1995.
Jan 4, 2011
UK increase in VAT, a levy on sales that applies to most consumer goods and services, to 20 percent from 17.5 percent
The latest country to announce a standard rate rise is the Czech Republic. On Nov. 3, it said it would move the rate up from 19 percent to 20 percent on Jan. 1, 2010. Also in the past five months, Lithuania has increased its standard VAT rate from 19 percent to 21 percent and Hungary from 20 percent to 25 percent. In September, Spain announced it would raise its standard rate from 16 percent to 18 percent on July 1, 2010, and Switzerland said in October that its standard rate would rise from 7.6 percent to 8 percent in January 2011. The United Kingdom’s standard rate returns to 17.5 percent on Jan. 1, 2010, after a temporary reduction to 15 percent.
Seeing that our Federally elected officials have a strong desire for he United States to follow the path of Greece, lets look at Greece’s history with the VAT.
January 1, 1987: VAT/??? introduced to Greece by former Finance Minister Dimitris Tsovolas at a rate of 18 percent.
March 29, 2005: New Democracy raises VAT to New rates are 19 percent, 9 percent and 4.5 percent to defray cost of staging the Athens 2004 Olympics
March 15, 2010: VAT raised to 21 percent, 10 percent and 5 percent.
June 2010: Inflation hits 13-year high on VAT hikes (Kathimerini), and multinationals like Coca-Cola mull leaving Greece for a friendlier business environment
July 1, 2010: New VAT rates of 23 percent, 11 percent and 5.5 percent take effect.
November 18, 2010: Third round of austerity measures was drafted to increase VAT on January 1, 2011 from 5.5 percent to 6.5 percent, 11 percent to 13 percent, leaving 23 percent ‘as is,’ then moving luxury goods in the 11 percent bracket to 23 percent, and pharmaceuticals and tourism services to 6.5 percent. Rates for the Aegean Islands will be hikes from 4 percent to 5 percent, and 8 percent to 9 percent. Tax on tobacco products will increase by 10-20 percent.
January 1, 2011: New VAT rates of 23 percent, 13 percent and 6.5 percent take effect,
March 28, 2011: Fourth round of austerity measures could include an added tax on soft drinks
September 1, 2011: All non-alcoholic beverages purchased anywhere are taxed at 23 percent instead of 13 percent, except plain table water. All ready-made, prepared or packaged meals bought anywhere outside of an educational institution or hospital are also taxed 23 percent.
Here’s how the VAT assessment in Greece breaks down, as of September 2011:
23 percent — Clothes, shoes, cleaning products and detergents, alcohol/wine, non-alcoholic beverages purchased anywhere (carbonated/flavored water, ready-made coffee/tea/hot chocolate, fruit/vegetable juice, sport drinks, granita, smoothie)*; ready-made or prepared meals/sandwiches from cafes, catering services, fast food and delivery, hotels, restaurants, supermarkets, snack bars*; products, toiletries, barber and hair salon services, telecommunications (mobile/cell, land line, Internet service), electronics, appliances, CDs, DVDs, furniture, jewelry, plastics, paper products, school supplies, fuel/gas/petrol, cars, motorcycles, scooters, bicycles, vehicle repair and maintenance, road and bridge tolls, use of sports/training/athletic facilities and events, building materials, professional tax/accounting services, artwork, recently constructed buildings (excluding primary residence).
13 percent – Food at the supermarket and grocer (manavis), educational institutions, hospitals and clinics, social welfare organizations; food from eating establishments/cafes/pastry shops/bakeries,* non-carbonated water without flavoring or sugar, non-alcoholic beverages, fresh baked goods and pastry from bakeries, eyeglasses, transport tickets (ferry, bus, train), electricity (DEH), natural gas, water (EYDAP); tickets for movies, concerts, circuses, zoos, exhibitions and other cultural events; equipment to serve the disabled, repairs on older homes (plumber, electrician, painters).
6.5 percent — Books, magazines, newspapers, theater tickets, pharmaceuticals, hotel accommodation, self-contained apartment rentals and camping services.
So, I ask you Tea Party patriots now supporting the concept of a VAT, were you really not against government over-taxation to begin with, or is does the catchy phrase “9-9-9” just sound good. Any way you slice this baby up, it’s rotten on the inside. Supporting an additional tax will not only progress America’s march towards Socialism, but will turn American into another failed European Socialist experiment = BROKE.
I thought the Tea Party formed to help push our Federal Government towards fiscal responsibility. So how can Herman Cain supporters advocate for the most inequitable and abused tax schemes ever devised – by Socialists at that. I say we definitely need to scrap the current U.S. tax code as to eliminate the Oligarchy that now runs our country. Adopting a Socialist taxing scheme like the VAT will not help our country survive. So please, stop supporting additional governmental means to further enslave the American population.
WAKE UP AND STOP SUPPORTING A VAT!
I don’t know who Al is but he needs to read The Fairtax Plan by Neal Boortz. The 9-9-9 plan of Herman Cain, as well as the Fairtax, is not a VAT tax. A VAT ( Value Added Tax) is a tax that is added to the value of a product at each stage of it’s production. It is hidden, ie not transparent. The Fairtax and the 9% sales tax as proposed by Mr. Gain is added to the cost of a product when it is purchased and is therefore transparent, as is any sales tax you may have to pay. The Fairtax and Mr. Cain’s 9% sales tax is a replacement tax and not an additional tax. Which ever one was implemented would replace all the federal taxes that are presently included in the cost of products purchased. Mr Al needs to bone up on his tax definitions. I’m not a tax attorney nor do I play one on TV. but I have been paying attention to the Fairtax for a while.
Bill,
You can call Cain’s plan whatever you want but the fact remains that it allows for yet another revenue stream for big government progressives to exploit. Tax swap plans are a classic government SCAM. Everything looks good the first couple of years but as soon as the dust settles or a fake “crisis” occurs, politicians will jack up the rates. Only the most naive would fall for such a scam and actually believe that 9-9-9 would remain 9-9-9. It’s already changing to 9-0-9 if you happen to live is the right spot.
The idea that prices would fall because the tax is no longer hidden is absurd. Prices are not going to drop. Prices should have fallen off dramatically over the past couple of years but the Federal Reserve made sure that didn’t happen. On the contrary, they forced prices up by inflating the money supply. The FED loves inflation and hates deflation. They make damn sure prices don’t fall.
Anyway, Cain is a nice enough guy and I feel bad that he is the victim of a smear campaign. However, his 9-9-9 plan is misguided and like Al, I’m extremely disappointed that so called Tea Party members would support a new revenue stream and would fall for the old tax swap scam. Taxed Enough Already is truly becoming Tax Everything Always . If that is the direction of the Tea Party, count me out.
Bill, you’re missing my point. The Cain plan gives the government an additional means in which to take your money. Lets have a flat tax or a fair tax, but not an income tax, accompanied by a sales tax. Any Tea Party people supporting this are not really “Taxed Enough Already” and should make no claim of supporting Tea Party ideals.
Look folks. I hate to have to pay for Wilson’s (and followed by Neocons, RiNOs, and Progressives) bill, but we have to do the responsible thing and then stop all the idiotic spending. Cain’s 9-9-9 (and with opportunity zones, includes 9-0-9) will not change what you pay at the check out line. The 9% sales tax replaces all the hidden taxes with one that is no longer hidden (payroll taxes and other ones). The prices of bread at checkout (and after you pay all the various other taxes if you live in a state that has them) will still cost your $1.50 at the checkout lane as it did before (but I actually believe Cain’s plan will reduce that price even more). Maybe one day, you can implement my plan, but I don’t think the powers that be will allow it, so Mr. Cain’s plan is the next best thing imo. 🙂
my plan below:
First of all, we have to understand that we are going broke. My solution: we got to recall all our military from all foreign lands (and I mean all) and cut it by a third to a half and the remaining troops main mission should be guarding the borders as they are Constitutionally demanded too. Now that would save a heck of a lot of money. Let the rest of the world take care of their own business; we can no longer be the police force of the world. Domestically, I would eliminate the Income tax and IRS and go to a National Sales Tax model. Less entities to collect from so that will further reduce the need for government workers saving more money. Also, before we even had income tax, we got most of our money from tariffs and other fees. Repeal NAFTA/GATT and bring the tariffs back. Short term, things will cost more. Long term, the jobs will return (they have too if companies want to sell their goods to us at a reasonable cost to them). NAFTA/GATT just gave them incentives to leave. That’s my take; want to hear yours.
Lyle,
Your ideas are good, but the Cain plan or anybody else’s plan that gives the Federal Government another swipe at my money (e.g. VAT, national sales tax) is nuts.
In addition to your ideas, I would immediately implement a flat tax (3-tiered) and scrap the current tax code. With that I would dismantle the IRS and have a private contractors bid to collect the tax in the new system. No exemptions for anyone. End religious and philanthropic foundation abuse of tax exempt status. Reform campaign finance laws and push to end “corporations are people” BS. I would cut the hell out of defense and initiate entitlement reform. Then I would eliminate all Federal Government unions so we can start thinning out the Federal payroll. At that point, we could start swinging the big axe to eliminate and/or consolidate Federal Agencies/Dept. to an affordable level.
Unfortunately, until America ends this Oligarch/Corporatist controlled Federal government, nothing will change.
The national sales tax as described in The Fairtax Plan by Neal Boortz replaces all federal taxes now included in the cost of new products and services we buy. The price we pay stays about the same. People need to read the book and check out Fairtax.org for more detailed info. As explained in the book, no matter what tax plan is implemented We The People will always have to keep an eye on ,and vote out of office, politicians who want to raise this tax. The Fairtax, if implemented, will require the elimination of the IRS,(YAHOO ) and all federal taxes. The Fairtax does not become another stream of income for the government but the only source of income. Absolutly need to dramaticly reduce spending and reign in all the wasteful spending. In response to Al, I know we are on the same page and I believe Mr. Cain probably should have just come out in support of the Fairtax but I heard Neal Boortz come out in support of 9-9-9 saying it was a transitional plan to the Fairtax. Anyhow the need to get rid of the present tax code is now on the table and being discussed and we need to keep up the pressure. God Speed
Bill,
I think we are on the same page – the current tax code has to go, with the overreaching and thuggish IRS being abolished with it. While I’m not totally opposed to a Fair Tax-like scheme, I’m just worried about abuse of it by corrupt politicians, as has been the case with Europe’s VAT. I’m primarily in support of a streamlined income tax or a consumption tax, not both.
The problem will ultimately be finding politicians who will are willing to get rid of a corrupt tax system that rewards the Corporate-Government cozy relationships at the expense of the American taxpayer.