A VAT's Bottom Line

What would it cost? Emanuel argues in his book that a 10 percent VAT would pay for every American not entitled to Medicare or Medicaid to enroll in a health plan with no deductibles and minimal copayments. In his 2008 book, "100 Million Unnecessary Returns," Yale law professor Michael J. Graetz estimates that a VAT of 10 to 14 percent would raise enough money to exempt families earning less than $100,000 -- about 90 percent of households -- from the income tax and would lower rates for everyone else.

And in a paper published last month in the Virginia Tax Review, Burman suggests that a 25 percent VAT could do it all: Pay for health-care reform, balance the federal budget and exempt millions of families from the income tax while slashing the top rate to 25 percent. A gallon of milk would jump from $3.69 to $4.61, and a $5,000 bathroom renovation would suddenly cost $6,250, but the nation's debt would stabilize and everybody could see a doctor.

It is gaining momentum ... Washington Post article about talks on the hill ..

I think the hidden benefit of it all.. is that it will encourage people to save more.. thus creating less of the "dangerous" spender that live beyond their mean.

Of course those in government would find a way to offset the benefits with some type of spending.

The U.S. Constitution mandates an amazingly streamlined form of taxation -- apportionment by state -- but we've gone and royally screwed it up.

Unfortunately, I'm packing for a weeklong drill -- blah -- so I don't have time to write a treatise on this topic. I definitely want to, though.

"Nonstopdrivel" wrote: