**Information From The Heritage FoundationSpeaker Nancy Pelosi has joined the growing liberal chorus calling for a massive tax hike through the implementation of a value added tax (VAT).
A VAT is similar to a national sales tax. Businesses would pay it at each stage of the production process and consumers at the cash register. European countries have suffered with VATs for years.
As we pointed out earlier this year, Congress should not pass a VAT to pay for a government takeover of the health care system or expand the size of government. If it does, it will mean a massive tax hike for YOU!
Some suggest the VAT rate should be set as high as 20 percent. At that rate, a VAT that covers all goods and services in our economy – including food, clothing, housing, and health care – would collect an additional $1,260 billion a year and cost every U.S. household $10,680 annually.
Right now the rate being considered is 15%, but know that if Congress passes a VAT at any rate it WILL be pushed higher in the future.
Evidence from other countries that already have VATs prove that once it is implamented it is easy to raise.
The American people would be better off if Congress would stop spending other people's money.
Adding a new entitlement will only make the country’s fiscal situation worse and painful tax hikes more likely. Unfortunately, that might have been the plan all along.
A VAT is similar to a national sales tax. Businesses would pay it at each stage of the production process and consumers at the cash register. European countries have suffered with VATs for years.
As we pointed out earlier this year, Congress should not pass a VAT to pay for a government takeover of the health care system or expand the size of government. If it does, it will mean a massive tax hike for YOU!
Some suggest the VAT rate should be set as high as 20 percent. At that rate, a VAT that covers all goods and services in our economy – including food, clothing, housing, and health care – would collect an additional $1,260 billion a year and cost every U.S. household $10,680 annually.
Right now the rate being considered is 15%, but know that if Congress passes a VAT at any rate it WILL be pushed higher in the future.
Evidence from other countries that already have VATs prove that once it is implamented it is easy to raise.
The American people would be better off if Congress would stop spending other people's money.
Adding a new entitlement will only make the country’s fiscal situation worse and painful tax hikes more likely. Unfortunately, that might have been the plan all along.
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