The value added tax could help fund health care. Why isn't Congress discussing it?

[MoonRiver]

Value added tax (VAT), or goods and services tax (GST) is a consumption tax levied on value added. In contrast to sales tax, VAT is neutral with respect to the number of passages that there are between the producer and the final consumer; where sales tax is levied on total value at each stage, the result is a cascade (downstream taxes levied on upstream taxes). A VAT is an indirect tax, in that the tax is collected from someone who does not bear the entire cost of the tax.

http://en.wikipedia.org/wiki/Value_added_tax

Why the heck isn't this rational option even being debated?

[ret5hd]

1. Here's my problem with it, straight from your source:

<snip>
It has been criticized on the grounds that (like other consumption taxes) it is a regressive tax.
</snip>

We need a WEALTH tax.

[MoonRiver]

4. We may need that too.

But the VAT distributes the tax across many, and therefore is reasonably fair. I say we use what works to provide health care to all.

[Oregone]

6. Income taxes also work

Why dust off Republican ideas when there are many far more viable?

[ret5hd]

7. The wealth tax would spread it proportionally across many, and therefore is TRULY fair.

[AngryAmish]

24. A wealth tax is considered a taking

If the government takes something they have to pay for it. Thus, if they take 10% of your wealth they have to compensate you 10% of your wealth.

[sofa king]

26. They get the CFTC, the FDIC, the OCC, and the SEC.

In addition to the Federal Reserve. All of those organizations are designed to do one thing: keep rich people rich.

I am not rich. I do not need any of those agencies. Yet I pay for them, a larger percentage of my income than any wealthy person, because anything I pay taxes on is a significant proportion of my income. I live hand-to-mouth, which means that almost five percent of my income goes to state sales taxes alone.

Five percent of Steve Jobs' income from 2007 would be 3.235 million dollars. Steve Jobs did not buy $647 million worth of groceries in 2007.

[AngryAmish]

27. Your situation does not change the 5th amendment

[Tierra_y_Libertad]

2. Raising taxes, to politicians, is as deadly as admitting to lost wars.

[dysfunctional press]

3. regressive taxes are a bad way to go.

we need to tax wealth- it's become too concentrated at the top. society works best when things are more equitable.

[MoonRiver]

8. Europe uses both approaches.

The VAT is utilized there there, and the wealthy are taxed at a high rate. We need to do whatever we can to fund progressive social programs, especially national health care.

[dysfunctional press]

16. their wealth is also much more equitably spread around.

ours is so concentrated at the top, that we need to do some SERIOUS wealth taxing before we even consider thinking about possibly someday maybe exploring the idea of some type of a vat tax.

[malletgirl02]

23. you are right

Here is a link to information on the Gini-Coefficint to help back up your argument.http://www.sustainablemiddleclass.com/Gini-Coefficient.html The Gini Coefficient measure income inequality. The website list a select group of nations, and as you already said the U.S, has a pretty high rate of income inequality. Here is a list of Gini Coeffincts.i got this list from this blog: http://blog.sustainablemiddleclass.com/?page_id=162. The higher the number the more income inequality.

Japan 24.9

Sweden 25.0

Germany 28.3

France 32.7

Pakistan 33.0

Canada 33.1

Switzerland 33.1

United Kingdom 36.0

Iran 43.0

United States 46.6

Argentina 52.2

Mexico 54.6

South Africa 57.8

Namibia 70.7

[SharonAnn]

21. But we do sales taxes at the state and local levels, unlike Europe.

[Oregone]

5. There are tons of better ways to raise funds. The real question is why are you bringing this one up?

[MoonRiver]

9. Because it makes sense.

Give me your great ideas.

[ret5hd]

12. A wealth tax.

[MoonRiver]

14. That's another idea that will work.

But we need more than one approach. Of course, I'm sure you know, that the VAT would also mostly affect the rich, who make the most expensive purchases.

[ret5hd]

15. But the poor, who spend 100% of their money get taxed on 100% of their money...

while the rich, who spend some percentage LESS than all their money get taxed only on the percentage of money they spend.

Use your head.

[MoonRiver]

17. Do you understand that every progressive country in Europe uses the VAT?

The poor reap the benefits through lifetimes of guaranteed health care, retirement, housing and food.

[ret5hd]

20. 1) The wealth distribution curve is vastly different in many countries.

2) Where is the rule that we have to pay for it the exact same way???

[SharonAnn]

22. We already have sales taxes at the state and local level. They don't.

[Oregone]

13. Income taxes with marginal rates, aimed at different earning levels

Sorta like, well, what is already in place. That makes more sense, since lower income people don't spend a higher proportion of their disposable income on the tax.

[SoCalDem]

10. Beause the Pavlovian Americans wet their pants at the mere mention of the word "tax"

We have been systematically programmed, over the last 30-40 years, to think that government can and should be run on an ever-increasing REDUCTION of income (tax money collected), BUT that they, as individuals should be keeping/getting more and more income.

This dichotomy extends to the fact that they also expect ever-increasing services from the government, they want pristine roads, fantastic schools, a beefy military, safe airplanes, protection from "the bad guys™ ©", and so many other things, although they do not want any of "their" money to go TO the government for these things.

[MoonRiver]

11. Yeah, it's the 'I'm with stoopid' mentality.

[Historic NY]

18. VAT is just so European to them.

[Uzybone]

19. because its a tax

We want it all for free.

[ret5hd]

25. Where did you go?!?!?!