What is the liberals favorite way to close the deficit gap? Cut funding to Planned Parenthood? Unfortunately, no. They want to raise taxes but not just on the top 10%, but, also, on the above-mentioned 47%. Everyone will feel the effects of the new tax proposition.
President Obama has been steadfast in his pledge that he won't raise taxes on those making less than $250,000. But that doesn't mean only high-income households will be subject to higher taxes.
An increasing number of influential Democrats and fiscal-policy experts have signaled that lawmakers will have to get a handle on the deficit. And they recommend seriously considering the creation of a value-added tax (VAT) on top of the federal income tax.
First of all, did he just say that Obama has been "steadfast" while making sure that us peasants are paying more taxes? Yes, I believe that he did. Smokers might have a different take on that statement. Soon enough, we will all feel the burn, if the cap-n-tax bill that Obama likes is passed.
Anyway, meanwhile back at the Hall of Justice:
A VAT is a slick way of taxing us indirectly without making it sound like they are taxing us. Democrats are very good at that. Aren't they?
For those who don't know what a VAT is:
A VAT is tax on consumption similar to a national sales tax. But it's not just paid at the cash register. It's levied at every stage of production. So all businesses involved in making a product or performing a service would pay a VAT. And then the end-user -- such as the retail customer -- ponies up as well.
Basically, they want to tax the businesses who participate in any way in the manufacturing process of certain goods and services all the way down the assembly line until it gets to us, the consumer. Even though, they will be taxing businesses, mostly, who do you the companies will transfer the added cost to? Yep, us.
Ok, some will be saying that maybe they'll just be taxing high end items like Corvettes, Armani suits, penthouse hotel suites or Starbucks coffee, so the "everyday Americans" won't be paying more, but that couldn't be further from the truth:
That could mean more money out of everyone's pockets when buying virtually anything -- sweaters, school books, furniture, pottery classes, dinners out.
While they don't plan on enacting the plan until the economy recovers, it'll still be a jobs killer and will stifle economic progress, when it is enacted, if it is.
If you are an "everyday American" that wants to wear hand me downs, stay with the same furniture you bought when Carter was president, never go to school, and stay a recluse, you won't be taxed. However, if you are, gird your wallet. The Democrats had an idea.