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.

Wall Street Journal

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.

Financial Times

…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.

Bloomberg

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

Business Travel News

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.

Living In Greece

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!