This blog has been warning about the danger of a value-added tax. We’ve cited the salivating comments of Speaker Pelosi. We’ve noted the favorable comments by Obama insiders like the former Co-Chairman of his transition team. We know the battle is coming. Now we need to fight. This newly-released video from the Center for Freedom and Prosperity provides the data showing that this is a do-or-die fight. If we lose, there is no hope of stopping statism. Blocking a VAT is not a sufficient condition to protect America from becoming a French-style welfare state, but it is a necessary condition.
A VAT Would Finance the Road to Serfdom
October 14, 2009 by Dan Mitchell
Posted in Big Government, Center for Freedom and Prosperity, Economics, Fiscal Policy, Government Spending, Pelosi, Spending, Tax Competition, Taxation, Value-Added Tax, VAT, Video | Tagged Big Government, Obama, Pelosi, Tax, Taxation, Value-Added Tax, VAT, Video | 258 Comments
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[…] P.P.S. The bottom line is that you can’t have European-sized government without European-style taxes. Including a money-siphoning value-added tax. […]
[…] The United States, for what it is worth, has a mediocre #22 rank, dragged down by a horrible score – last among developed nations – for “cross-border tax rules” (but helped by a good score for consumption taxes since the U.S. has not made the mistake of imposing a value-added tax). […]
[…] The United States, for what it is worth, has a mediocre #22 rank, dragged down by a horrible score – last among developed nations – for “cross-border tax rules” (but helped by a good score for consumption taxes since the U.S. has not made the mistake of imposing a value-added tax). […]
[…] the way, Switzerland’s value-added tax is far lower than any other European nation, so ordinary workers aren’t being indirectly pillaged […]
[…] the way, Switzerland’s value-added tax is far lower than any other European nation, so ordinary workers aren’t being indirectly […]
[…] the U.S. would not have the highest tax burden on consumption (no value-added tax in […]
[…] the U.S. would not have the highest tax burden on consumption (no value-added tax in America, […]
[…] the U.S. would not have the highest tax burden on consumption (no value-added tax in America, […]
[…] part of my (reality-based) opposition to a value-added tax, I testified to the Ways & Means Committee back in […]
[…] mean he is a poster boy for libertarianism. At one point, he flirted with the notion of a value-added tax, so I was happy when he decided against a presidential race. He also presided over irresponsible […]
[…] We also have decades of evidence from Europe. There’s been a huge increase in the tax burden in Western Europe since the 1960s (largely enabled by the enactment of value-added taxes). […]
[…] We also have decades of evidence from Europe. There’s been a huge increase in the tax burden in Western Europe since the 1960s (largely enabled by the enactment of value-added taxes). […]
[…] The key thing to notice is that there’s no column for decreases in the VAT. That’s because no nation lowered that levy. Practically speaking, this hidden form of a national sales tax is a money machine for bigger government. […]
[…] the good news. The bad news is that a value-added tax was imposed back in the 1990s. Though the rate has stayed low (so far) and hasn’t (yet) become a […]
[…] views on the value-added tax are very […]
[…] semi-honest leftists who admit that their real goal is taxing the middle class (probably with a value-added tax!), so we can’t say we haven’t been […]
[…] leftists who admit that their real goal is taxing the middle class (probably with a value-added tax!), so we can’t say we haven’t been […]
[…] The CBO study also points out that financing new spending with a value-added tax wouldn’t avert economic […]
[…] The CBO study also points out that financing new spending with a value-added tax wouldn’t avert economic […]
[…] we should keep the income tax as a vehicle for class warfare and augment it with a VAT?!? Yeah, good luck trying to sell that idea. And Heaven help us if it ever succeeded since […]
[…] Here’s my video from 2009, which explains how a VAT works and why it would be a bad […]
[…] we should keep the income tax as a vehicle for class warfare and augment it with a VAT?!? Yeah, good luck trying to sell that idea. And Heaven help us if it ever succeeded since […]
[…] So one of the lessons to be learned is that it’s never a good idea to give politicians multiple sources of revenue (something to remember every time greedy officials in D.C. broach the idea of a value-added tax). […]
[…] I’ve written dozens of columns explaining why it would be a terrible idea for the United States to enact a value-added tax. […]
[…] But the new taxes he proposes would finance only a tiny fraction of his spending agenda. If Washington ever tried to adopt even part of his platform, it inevitably would mean a European-style value-added tax. […]
[…] wrote yesterday about Japan’s experience with the value-added tax, mostly to criticize the International Monetary […]
[…] While he’s not as outwardly radical as Elizabeth Warren, Bernie Sanders, and Kamala Harris, Andrew Yang has joined together two very bad ideas – universal handouts and a value-added tax. […]
[…] are theoretical reasons why a value-added tax (or a national sales tax) might be attractive as a replacement for parts of the income tax, but we […]
[…] In the tax chart, you can see that the two countries were very similar from the 1930s to the 1960s. But then the tax burden in Denmark got much worse (coinciding with the imposition of the VAT). […]
[…] but not least, I’ll recycle my video explaining why a VAT would be very bad news for the United […]
[…] to keep in mind when the crowd in Washington says we should have a value-added tax. Based on what’s happened in Europe, I guarantee it would just be a matter of time before […]
[…] I see an otherwise sensible person express support for a value-added tax, it triggers a Pavlovian response. And it’s not a favorable […]
[…] I see an otherwise sensible person express support for a value-added tax, it triggers a Pavlovian response. And it’s not a favorable […]
[…] the granddaddy of new taxes would be the value-added tax, a money machine for bigger […]
[…] The bureaucracy is proposing other taxes that target everyone in the country. Including a pernicious value-added tax. […]
[…] the good news. The bad news is that a value-added tax was imposed back in the 1990s. Though the rate has stayed low (so far) and hasn’t (yet) […]
[…] conclude, here’s my video on why the value-added tax is so dangerous to good fiscal […]
[…] Veronique and I point out that the lack of a VAT creates a big advantage for the United […]
[…] of the reasons that tax increases in Washington are such a bad idea (and one of the reasons why a value-added tax is an especially bad idea) is that the prospect of additional tax revenue kills any possibility of […]
[…] cap” and apply the Social Security payroll tax on all income. We also thankfully don’t have a value-added tax. These factors explain why our medium-blue and light-blue bars are the […]
[…] and apply the Social Security payroll tax on all income. We also thankfully don’t have a value-added tax. These factors explain why our medium-blue and light-blue bars are the […]
[…] cap” and apply the Social Security payroll tax on all income. We also thankfully don’t have a value-added tax. These factors explain why our medium-blue and light-blue bars are the […]
[…] and apply the Social Security payroll tax on all income. We also thankfully don’t have a value-added tax. These factors explain why our medium-blue and light-blue bars are the […]
[…] P.S. When measuring the tax burden, the reason that America ranks above most European nations is not because they impose heavier taxes on rich people and businesses (indeed, the U.S. has a much higher corporate tax rate). Instead, we rank above Europe because they impose very heavy taxes on poor and middle-income taxpayers (mostly because of the value-added tax, which helps to explain why I am so unalterably opposed to that destructive levy). […]
[…] If you want more information, I also discuss the trade impact of a VAT in this video. […]
[…] If you want more information, I also discuss the trade impact of a VAT in this video. […]
[…] But now look at the numbers. Pay special attention to the period between 1960 and 1980, which is when the welfare state exploded in many of the countries (aided and abetted by the value-added tax). […]
[…] But now look at the numbers. Pay special attention to the period between 1960 and 1980, which is when the welfare state exploded in many of the countries (aided and abetted by the value-added tax). […]
[…] because the numbers don’t add up? Will he then decide that he needs a big revenue plug like a value-added tax? Sounds crazy, right, but don’t forget that Rand Paul and Ted Cruz were seduced into adding […]
[…] a scheme to pillage the state’s businesses with a gross receipts tax, which is sort of like a value-added tax but with no credit for taxes paid earlier in the production process, which means the burden […]
[…] But US-style progressivity is the result of very low taxes on lower- and middle-income workers (no value-added tax, for instance), not unusually steep taxes on higher-income […]
[…] If you want more information, I also discuss the trade impact of a VAT in this video. […]
[…] If you want more information, I also discuss the trade impact of a VAT in this video. […]
[…] If you want more information, I also discuss the trade impact of a VAT in this video. […]
[…] may be my favorite part of the GOP platform. Hopefully it will discourage Rand Paul and Ted Cruz from including a VAT if […]
[…] the big expansion of the welfare state in the 1960s (which was made possible by the money machine known as the value-added tax) has slowed growth in western nations. The only silver lining to that dark cloud is that at least […]
[…] explain this issue in greater detail in this video, beginning about 5:15, though I hope the entire thing is worth […]
[…] is bigger in Europe because of higher tax burdens on the poor and middle class, specifically onerous value-added taxes and top income tax rates that take effect at relatively modest levels of […]
[…] is bigger in Europe because of higher tax burdens on the poor and middle class, specifically onerous value-added taxes and top income tax rates that take effect at relatively modest levels of […]
[…] When Clinton says we should increase “the burden on consumption taxes,” that almost surely means he would like to see a value-added tax. […]
[…] when the dust settles (which has been my concern about the Rand Paul and Ted Cruz plans to impose a value-added tax, even though their plans theoretically would produce a much less destructive tax […]
[…] you need more information, here’s my video on the […]
[…] that faith in government and politicians puts a nation on a road to serfdom (I’ve argued that the VAT does the same […]
[…] doesn’t really matter what the initial rate is. The VAT is an easy tax to raise because it’s so […]
[…] in case you haven’t reached the point of VAT exhaustion, here’s my video explaining why the VAT is such a bad […]
[…] only caveat, for those who advocate a national sales tax or value-added tax, is that we first need to repeal the 16th Amendment and replace it with something so ironclad that […]
[…] International Monetary Fund accidentally confirmed that the value-added tax is a revenue machine to finance bigger government and heavier tax […]
[…] International Monetary Fund accidentally confirmed that the value-added tax is a revenue machine to finance bigger government and heavier tax […]
[…] By the way, none of this suggests that John Kasich is universally bad on policy or that Paul Ryan is universally good. Kasich, after all, was Chairman of the House Budget Committee in the 1990s when genuine spending restraint led to a balanced budget. And Paul Ryan’s otherwise good ideas on tax reform have been marred by occasional flirtation with a value-added tax. […]
[…] By the way, none of this suggests that John Kasich is universally bad on policy or that Paul Ryan is universally good. Kasich, after all, was Chairman of the House Budget Committee in the 1990s when genuine spending restraint led to a balanced budget. And Paul Ryan’s otherwise good ideas on tax reform have been marred by occasional flirtation with a value-added tax. […]
[…] This means, for all intents and purposes, that he is turning the corporate income tax into a value-added tax […]
[…] The answer is that Senator Paul’s “business-activity tax” doesn’t allow a deduction for wages and salaries. This means, for all intents and purposes, that he is turning the corporate income tax into a value-added tax (VAT). […]
[…] This means, for all intents and purposes, that he is turning the corporate income tax into a value-added tax […]
[…] First and foremost, never give politicians a new source of revenue, which has very important implications for the debate in Washington, DC, about a value-added tax. […]
[…] is why I repeatedly share this video about the downside risk of a […]
[…] may decide to give up if something really horrible happens, such as adoption of a value-added tax. Giving politicians a big new source of revenue, after all, would cripple any incentive for fiscal […]
[…] at the personal income tax, so these numbers don’t include, for instance, the heavy burden of the value-added tax on low-income people in […]
[…] revenue that are percolating in the corridors of power, including energy taxes, financial taxes, value-added taxes, and wealth […]
[…] keep all this data in mind the next time someone tells you we should let politicians impose a VAT, an energy tax, or a financial […]
[…] keep all this data in mind the next time someone tells you we should let politicians impose a VAT, an energy tax, or a financial […]
[…] kind of changes to programs such as Medicare and Medicaid if politicians instead manage to impose a value-added tax? What incentive would they have to do the right thing if they instead have the option of constantly […]
[…] won’t be possible if politicians think they can just raise taxes instead. Particularly a value-added tax, which the European evidence shows is a money machine for bigger […]
[…] won’t be possible if politicians think they can just raise taxes instead. Particularly a value-added tax, which the European evidence shows is a money machine for bigger […]
[…] get new sources of revenue. That’s why, for instance, the value-added tax would be a terrible idea. Politicians might promise to use the revenue to lower or eliminate other taxes, but the European […]
[…] we should keep the income tax as a vehicle for class warfare and augment it with a VAT?!? Yeah, good luck trying to sell that idea. And Heaven help us if it ever succeeded since […]
[…] elaborate in my video on the […]
[…] P.P.S. But let’s be fair to the IMF. The bureaucrats have given us – albeit unintentionally – some very good evidence against the value-added tax. […]
[…] the national sales tax and the value-added tax, for instance, are examples of consumption-based tax […]
[…] There is no value-added tax, which is a critically important feature of any tax reform plan. As such, there is no risk the Camp […]
[…] burden of taxation – measured as a share of GDP – is higher in most other nations. The absence of a value-added tax is probably the most important reason why the United States retains an advantage in this […]
[…] This video from the Center for Freedom and Prosperity, narrated by yours truly, explains why the VAT would finance the road to serfdom. […]
[…] semi-honest leftists who admit that their real goal is taxing the middle class (probably with a value-added tax!), so we can’t say we haven’t been […]
[…] equestrians are agitated about the growing burden of the value-added tax. Here are some tidbits from a news […]
[…] When Clinton says we should increase “the burden on consumption taxes,” that almost surely means he would like to see a value-added tax. […]
[…] When Clinton says we should increase “the burden on consumption taxes,” that almost surely means he would like to see a value-added tax. […]
[…] nations. Simply stated, the left didn’t have easy opportunities to impose bad policies such as a VAT or single-payer government-run […]
[…] Simply stated, the left didn’t have easy opportunities to impose bad policies such as a VAT or single-payer government-run […]
[…] government’s decision to double the value-added tax? I’m definitely not a fan of adding a VAT on top of the income tax, but Japan made that mistake years ago. The choice to increase the tax […]
[…] That’s about the time, however, that the European governments began to impose value-added taxes. […]
[…] of semi-honest leftists who admit that their real goal is taxing the middle class (probably with a value-added tax!), so we can’t say we haven’t been […]
[…] yes, I may decide to give up if something really horrible happens, such as adoption of a value-added tax. Giving politicians a big new source of revenue, after all, would cripple any incentive for fiscal […]
[…] of semi-honest leftists who admit that their real goal is taxing the middle class (probably with a value-added tax!), so we can’t say we haven’t been […]
[…] 2. One of the most worrisome things about Mitt Romney is that he repeatedly refused to rule out a value-added tax when asked by the editors of the Wall Street Journal. I don’t trust politicians when they say they’ll do the right thing. So when they refuse to even give rhetorical assurances, alarm bells definitely start ringing. My nightmare scenario is that Romney would have been elected, made some half-hearted attempt to restrain spending, and then would have decided that a new source of revenue was needed once Harry Reid said no to any fiscal restraint. And as we saw during the Bush years, Republicans in Congress generally are willing to do the wrong thing when a Republican President makes the request. With Obama in the White House, it is highly unlikely that House Republicans would agree to this dangerous new tax. […]
[…] we should keep the income tax as a vehicle for class warfare and augment it with a VAT?!? Yeah, good luck trying to sell that idea. And Heaven help us if it ever succeeded since […]
[…] we should keep the income tax as a vehicle for class warfare and augment it with a VAT?!? Yeah, good luck trying to sell that idea. And Heaven help us if it ever succeeded since […]
[…] though it wasn’t their intention, IMF bureaucrats provided very strong evidence showing why the value-added tax is a destructive money machine for big […]
[…] it wasn’t their intention, IMF bureaucrats provided very strong evidence showing why the value-added tax is a destructive money machine for big […]
[…] If Obama and other statists get their way, we’ll see similar statistic in the United States. Higher income tax rates for the rich will mean higher income tax rates for the rest of us. Though I’m even more worried about a value-added tax, which would be a huge burden on ordinary people and a revenue machine for greedy politicians. […]
[…] of semi-honest leftists who admit that their real goal is taxing the middle class (probably with a value-added tax!), so we can’t say we haven’t been […]
[…] more information, here’s my video that describes the VAT and explains why it’s a bad […]
[…] more information, here’s my video that describes the VAT and explains why it’s a bad […]
[…] direction and presumably deserves part of the blame. The top income tax rate is now 45 percent. The value-added tax has jumped to 20 percent. Allister provides more […]
[…] state sales tax cartel to reduce income tax rates. What’s next, a column saying we should have a value-added tax because the politicians may use the revenue to get rid of the income tax? Yeah, good luck with that […]
[…] direction and presumably deserves part of the blame. The top income tax rate is now 45 percent. The value-added tax has jumped to 20 percent. Allister provides more […]
[…] sales tax cartel to reduce income tax rates. What’s next, a column saying we should have a value-added tax because the politicians may use the revenue to get rid of the income tax? Yeah, good luck with that […]
[…] of course, you’re a politician and you somehow think adding a value-added tax on top of the current income tax can be considered […]
[…] of limited government should never give politicians a new source of revenue, which is why fighting the value-added tax is one of my main priorities (and why advocates of small government should be worried not just […]
[…] it wasn’t their intention, IMF bureaucrats even provided very strong evidence showing why the value-added tax is adestructive money machine for big […]
[…] it wasn’t their intention, IMF bureaucrats even provided very strong evidence showing why the value-added tax is a destructive money machine for big […]
[…] I criticized the Paris-based bureaucracy for making the rather remarkable assertion that a value-added tax would boost growth and […]
[…] (see these amusing posters to understand why this was a foolish idea), along with a big hike in the value-added tax (though, to be fair, the corporate rate has been slightly reduced and part of Gordon Brown’s […]
[…] That would mean some progress on the spending side and presumably reduce the risk of bad things (like a VAT!) on the revenue […]
[…] fact that we should fight to our last breaths before we let this awful tax get imposed in America. This video has more […]
[…] That’s about the time, however, that the European governments began to impose value-added taxes. […]
[…] That’s about the time, however, that the European governments began to impose value-added taxes. […]
[…] That’s about the time, however, that the European governments began to impose value-added taxes. […]
[…] in my remarks. I pointed out the flat tax and sales tax (and even, at least in theory, the value-added tax) all share very attractive […]
[…] own personal guess is that he would impose a value-added tax if he thought it was politically feasible. Not that I’m showing any great insight. After all, […]
[…] it’s particularly worrisome to see that the author wants a value-added tax, which is a sure-fire way of giving politicians a big pile of money that will be used to expand the […]
[…] I am 100 percent confident, for instance, that they intend big tax hikes on the middle class, even though they would piously swear an oath to the contrary. Indeed, I suspect more than 90 percent of them secretly would like a value-added tax. […]
[…] government’s decision to double the value-added tax? I’m definitely not a fan of adding a VAT on top of the income tax, but Japan made that mistake years ago. The choice to increase the tax […]
[…] it’s particularly worrisome to see that the author wants a value-added tax, which is a sure-fire way of giving politicians a big pile of money that will be used to expand the […]
[…] (see these amusing posters to understand why this was a foolish idea), along with a big hike in the value-added tax (though, to be fair, the corporate rate has been slightly reduced and part of Gordon Brown’s […]
[…] with both an income tax and national sales tax. Which is what happened in Europe when governments implemented the value-added tax without repealing income […]
[…] 2. One of the most worrisome things about Mitt Romney is that he repeatedly refused to rule out a value-added tax when asked by the editors of the Wall Street Journal. I don’t trust politicians when they say they’ll do the right thing. So when they refuse to even give rhetorical assurances, alarm bells definitely start ringing. My nightmare scenario is that Romney would have been elected, made some half-hearted attempt to restrain spending, and then would have decided that a new source of revenue was needed once Harry Reid said no to any fiscal restraint. And as we saw during the Bush years, Republicans in Congress generally are willing to do the wrong thing when a Republican President makes the request. With Obama in the White House, it is highly unlikely that House Republicans would agree to this dangerous new tax. […]
[…] yes, I may decide to give up if something really horrible happens, such as adoption of a value-added tax. Giving politicians a big new source of revenue, after all, would cripple any incentive for fiscal […]
[…] government’s decision to double the value-added tax? I’m definitely not a fan of adding a VAT on top of the income tax, but Japan made that mistake years ago. The choice to increase the tax […]
[…] government’s decision to double the value-added tax? I’m definitely not a fan of adding a VAT on top of the income tax, but Japan made that mistake years ago. The choice to increase the tax […]
[…] privé à des hausses d'impôts très importantes. Les taux d'imposition ont été augmentés. Les Taxes sur la Valeur Ajoutée ont progressé, et d'autres taxes ont grimpé aussi. Cela pénalise l'activité productive et sape […]
[…] imposed very significant tax increases on the private sector. Income tax rates have been increased. Value-added taxes have been hiked, and other taxes have climbed as well. These penalties on productive activity […]
[…] imposed very significant tax increases on the private sector. Income tax rates have been increased. Value-added taxes have been hiked, and other taxes have climbed as well. These penalties on productive activity […]
[…] of semi-honest leftists who admit that their real goal is taxing the middle class (probably with a value-added tax!), so we can’t say we haven’t been […]
[…] * I reserve the right to defect to the Cayman Islands if the crooks in Washington ever succeed in saddling America with a value-added tax. […]
[…] surprisingly, it shows that the tax burden has jumped significantly. I suspect the adoption of the value-added tax deserves a good bit of the blame, but that’s a separate […]
[…] So the ultimate target will be the middle class, asmore and more statists are admitting, and the most worrisome threat isthe value-added tax. […]
[…] So the ultimate target will be the middle class, as more and more statists are admitting, and the most worrisome threat is the value-added tax. […]
[…] So the ultimate target will be the middle class, as more and more statists are admitting, and the most worrisome threat is the value-added tax. […]
[…] se révoltaient contre la taxe sur la valeur ajoutée, je leur donnerais 3 ovations, mais s’ils ne font que contester le fait que désormais les […]
[…] se révoltaient contre la taxe sur la valeur ajoutée, je leur donnerais 3 ovations, mais s’ils ne font que contester le fait que désormais les […]
[…] and no double taxation of income that is saved and invested. That can be a national sales tax or value-added tax, but it usually refers to the “Hall-Rabushka” flat tax championed by Dick Armey and […]
[…] they were protesting the VAT, I would give them three cheers, but if they’re simply protesting the fact that theater […]
[…] If I had to guess, I would say that Obama’s ultimate goal for hurting the middle class is a value-added tax. Notwithstanding the fiscal crisis in Europe, he actually said the VAT is “something that has […]
[…] If I had to guess, I would say that Obama’s ultimate goal for hurting the middle class is a value-added tax. Notwithstanding the fiscal crisis in Europe, he actually said the VAT is “something that has […]
[…] direction and presumably deserves part of the blame. The top income tax rate is now 45 percent. The value-added tax has jumped to 20 percent. Allister provides more […]
[…] the Secretary-General of the Paris-based bureaucracy just pontificated about the value-added tax. Let’s see whether my knee-jerk hostility is […]
[…] you don’t want the government grabbing a big chunk of your income with a value-added tax, then you’re much better off with Jersey’s 5 percent rate rather than the 20 percent […]
[…] I am 100 percent confident, for instance, that they intend big tax hikes on the middle class, even though they would piously swear an oath to the contrary. Indeed, I suspect more than 90 percent of them secretly would like a value-added tax. […]
[…] 2. One of the most worrisome things about Mitt Romney is that he repeatedly refused to rule out a value-added tax when asked by the editors of the Wall Street Journal. I don’t trust politicians when they say they’ll do the right thing. So when they refuse to even give rhetorical assurances, alarm bells definitely start ringing. My nightmare scenario is that Romney would have been elected, made some half-hearted attempt to restrain spending, and then would have decided that a new source of revenue was needed once Harry Reid said no to any fiscal restraint. And as we saw during the Bush years, Republicans in Congress generally are willing to do the wrong thing when a Republican President makes the request. With Obama in the White House, it is highly unlikely that House Republicans would agree to this dangerous new tax. […]
[…] Now the IMF has a new study about the relationship between economic growth and different types of taxes. Those finding are interesting, and I may even write about them in the next few days, but I want to focus on some amazing data from this research that shows exactly why proponents of limited government should resist the value-added tax. […]
[…] 4. High taxes on the rich are a precursor to higher taxes on everyone else – This is a point I have made on several occasions, including just yesterday. I’m particularly concerned that the politicians in Washington will boost income tax rates for everybody, then decide that even more money is needed and impose a value-added tax. […]
[…] If Obama and other statists get their way, we’ll see similar statistic in the United States. Higher income tax rates for the rich will mean higher income tax rates for the rest of us. Though I’m even more worried about a value-added tax, which would be a huge burden on ordinary people and a revenue machine for greedy politicians. […]
[…] 4. High taxes on the rich are a precursor to higher taxes on everyone else – This is a point I have made on several occasions, including just yesterday. I’m particularly concerned that the politicians in Washington will boost income tax rates for everybody, then decide that even more money is needed and impose a value-added tax. […]
[…] If Obama and other statists get their way, we’ll see similar statistic in the United States. Higher income tax rates for the rich will mean higher income tax rates for the rest of us. Though I’m even more worried about a value-added tax, which would be a huge burden on ordinary people and a revenue machine for greedy politicians. […]
[…] of limited government should never give politicians a new source of revenue, which is why fighting the value-added tax is one of my main priorities (and why advocates of small government should be worried not just […]
[…] own personal guess is that he would impose a value-added tax if he thought it was politically feasible. Not that I’m showing any great insight. After all, […]
[…] could evolve. My greatest fear is that a future president (perhaps Romney!) will decide to impose a value-added tax. In normal circumstances, that might upset state politicians since it would complicate their […]
[…] direction and presumably deserves part of the blame. The top income tax rate is now 45 percent. The value-added tax has jumped to 20 percent. Allister provides more details. Capital gains tax is too high. Luxury […]
[…] written many times about the dangers of a value-added tax. I obviously think it’s a bad idea as an add-on tax, but I also think it’s dangerous as […]
[…] But not because we tax rich people more. Instead, our system is more progressive because we don’t screw over lower-income and middle-income taxpayers with policies like the value-added tax. […]
[…] That would mean some progress on the spending side and presumably reduce the risk of bad things (like a VAT!) on the revenue side. Like this:LikeBe the first to like this. By Everette Hatcher III, on […]
[…] That would mean some progress on the spending side and presumably reduce the risk of bad things (like a VAT!) on the revenue side. Rate this:Share […]
[…] (see these amusing posters to understand why this was a foolish idea), along with a big hike in the value-added tax (though, to be fair, the corporate rate has been slightly reduced and part of Gordon Brown’s […]
[…] Mitt Romney wins and proposes to burden the U.S. economy with a value-added tax, would a majority of Republicans rise up in revolt and oppose that dangerous […]
[…] own personal guess is that he would impose a value-added tax if he thought it was politically feasible. Not that I’m showing any great insight. After all, […]
[…] it’s particularly worrisome to see that the author wants a value-added tax, which is a sure-fire way of giving politicians a big pile of money that will be used to expand the […]
[…] swear an oath to the contrary. Indeed, I suspect more than 90 percent of them secretly would like a value-added tax. var AdBrite_Title_Color = 'FFFF66'; var AdBrite_Text_Color = 'FFFFFF'; var […]
[…] somewhat sympathetic to a value-added tax. My worst-case scenario is they win the election, but then can’t get a good budget approved […]
[…] In this video, I explain why this European-style national sales tax is a money machine for bigger government. […]
[…] swear an oath to the contrary. Indeed, I suspect more than 90 percent of them secretly would like a value-added tax. It’s not that they necessarily dislike ordinary people, but privately they understand that […]
[…] Romney and Ryan are somewhat sympathetic to a value-added tax. My worst-case scenario is they win the election, but then can’t get a good budget approved […]
[…] Romney and Ryan are somewhat sympathetic to a value-added tax. My worst-case scenario is they win the election, but then can’t get a good budget approved […]
[…] I am 100 percent confident, for instance, that they intend big tax hikes on the middle class, even though they would piously swear an oath to the contrary. Indeed, I suspect more than 90 percent of them secretly would like a value-added tax. […]
[…] I am 100 percent confident, for instance, that they intend big tax hikes on the middle class, even though they would piously swear an oath to the contrary. Indeed, I suspect more than 90 percent of them secretly would like a value-added tax. […]
[…] I am 100 percent confident, for instance, that they intend big tax hikes on the middle class, even though they would piously swear an oath to the contrary. Indeed, I suspect more than 90 percent of them secretly would like a value-added tax. […]
[…] explained before that I’m skeptical of the Fair Tax, hostile to the value-added tax, and opposed to other forms of a national sales tax for the simple reason that I don’t trust […]
[…] When I testified to the Ways & Means Committee about the VAT, I was a lone voice against this pernicious tax while the other four witnesses supported making America more like […]
[…] I should have mentioned that some politicians think that we can boost savings by imposing a value-added tax! This is not only a perverse example of Mitchell’s law, but it’s also completely […]
[…] be an improvement, especially if the warning signs are correct and he saddles the country with a value-added tax, so the American people may be tossed from one frying pan to […]
[…] be an improvement, especially if the warning signs are correct and he saddles the country with a value-added tax, so the American people may be tossed from one frying pan to […]
[…] I assume this cartoon was designed to show why a value-added tax is a bad idea, but it’s very appropriate for this topic as […]
[…] see eye to eye on this issue, but that would be a rash assumption. While I see a giant new tax as a dangerous step on the road to serfdom, Josh thinks it’s a necessary and desirable reform. …it is time to reconsider a VAT. It […]
[…] When I testified to the Ways & Means Committee about the VAT, I was a lone voice against this pernicious tax while the other four witnesses supported making America more like […]
[…] value-added tax, which averages 21 percent in Europe, is a huge shadow income tax on lower-income and middle-income […]
[…] When I testified to the Ways & Means Committee about the VAT, I was a lone voice against this pernicious tax while the other four witnesses supported making America more like […]
[…] another cartoon that you’ll appreciate. It’s not by Chuck Asay, but it bashes the value-added tax, and that’s a quick way to get on my good […]
[…] For instance, we both testified to the Ways & Means Committee last year about the value-added tax, and he sided with all the other witnesses and favored adding a pernicious European-style national sales tax on top of the income tax. […]
[…] The left isn’t wrong. They know the higher taxes lead to higher spending, and they know the VAT is a money machine for big government. They just don’t publicly admit these are the results they want. Rate this: Share […]
[…] do the flat tax and national sales tax (and even the value-added tax) have in […]
[…] I’m happy to report that there is no value-added tax in the revenue portion of Congressman Ryan’s budget. There is a VAT in his Roadmap plan, and I […]
[…] I’m happy to report that there is no value-added tax in the revenue portion of Congressman Ryan’s budget. There is a VAT in his Roadmap plan, and […]
[…] are all good points. The bottom line is that failure to reform entitlements guarantees that politicians eventually will impose a value-added tax. Or they’ll push red ink to unsustainable levels. Actually, based on what’s happened in […]
[…] tempted to say the value-added tax since our hopes of restraining the federal government will be greatly undermined if we give the […]
[…] tempted to say the value-added tax since our hopes of restraining the federal government will be greatly undermined if we give the […]
[…] tempted to say the value-added tax since our hopes of restraining the federal government will be greatly undermined if we give the […]
[…] tempted to say the value-added tax since our hopes of restraining the federal government will be greatly undermined if we give the […]
[…] tempted to say the value-added tax since our hopes of restraining the federal government will be greatly undermined if we give the […]
[…] tempted to say the value-added tax since our hopes of restraining the federal government will be greatly undermined if we give the […]
[…] tempted to say the value-added tax since our hopes of restraining the federal government will be greatly undermined if we give the […]
[…] One of my key points was that the VAT is a money machine for big government. […]
[…] One of my key points was that the VAT is a money machine for big government. […]
[…] a column for today’s Wall Street Journal, I elaborated on those concerns, explaining why a VAT is bad fiscal policy. I had three main points. First, I noted that the big spenders need a VAT in order to achieve a […]
[…] a column for today’s Wall Street Journal, I elaborated on those concerns, explaining why a VAT is bad fiscal policy. I had three main points. First, I noted that the big spenders need a VAT in order to achieve a […]
[…] a column for today’s Wall Street Journal, I elaborated on those concerns, explaining why a VAT is bad fiscal policy. I had three main points. First, I noted that the big spenders need a VAT in order to achieve a […]
[…] value-added tax would be a disaster. This was music to my ears sinceI have repeatedly warned that the statists won’t be able to impose a European-style welfare state in the United States […]
[…] value-added tax would be a disaster. This was music to my ears since I have repeatedly warned that the statists won’t be able to impose a European-style welfare state in the United States […]
[…] A value-added tax would be a disaster. This was music to my ears since I have repeatedly warned that the statists won’t be able to impose a European-style welfare state in the United States […]
[…] A value-added tax would be a disaster. This was music to my ears since I have repeatedly warned that the statists won’t be able to impose a European-style welfare state in the United States […]
[…] This Center for Freedom and Prosperity study has all the gory details. The OECD bureaucrats (who get tax-free salaries, by the way) endorsed Obamacare, supported the failed stimulus, and are big advocates of a value-added tax for America. […]
[…] This Center for Freedom and Prosperity study has all the gory details. The OECD bureaucrats (who get tax-free salaries, by the way) endorsed Obamacare, supported the failed stimulus, and are big advocates of a value-added tax for America. […]
[…] the big expansion of the welfare state in the 1960s (which was made possible by the money maching known as the value-added tax) has slowed growth in western nations. The only silver lining to that dark cloud is that at least […]
[…] me put it more bluntly. A national sales tax – such as a Fair Tax or a VAT – would be a less destructive way of raising revenue than the current tax […]
[…] value-added tax, not surprisingly, has played a key role in Europe’s fiscal […]
[…] steak every night. But since I’m a cranky libertarian, let’s assume Obama has imposed a European-style 20 percent VAT and the tax burden has […]
[…] steak every night. But since I’m a cranky libertarian, let’s assume Obama has imposed a European-style 20 percent VAT and the tax burden has […]
[…] steak every night. But since I’m a cranky libertarian, let’s assume Obama has imposed a European-style 20 percent VAT and the tax burden has […]
[…] steak every night. But since I’m a cranky libertarian, let’s assume Obama has imposed a European-style 20 percent VAT and the tax burden has […]
[…] five other witnesses, and all of the other people testifying were sympathetic to a VAT. But since I had truth on my side, that made it a fair fight (though it did cross my mind that it’s not a good sign when a […]
[…] five other witnesses, and all of the other people testifying were sympathetic to a VAT. But since I had truth on my side, that made it a fair fight (though it did cross my mind that it’s not a good sign when a […]
[…] I should have known to force myself back into the discussion. I did get in a final warning about the value-added tax, but this was not my best […]
[…] revenue that would be necessary to finance promised entitlement benefits. As I’ve noted before, the VAT is a giant source of tax revenue, so the left no longer would have to worry about financing a European-sized welfare state. After […]
[…] revenue that would be necessary to finance promised entitlement benefits. As I’ve noted before, the VAT is a giant source of tax revenue, so the left no longer would have to worry about financing a European-sized welfare state. After […]
[…] system that Romney imposed on Massachusetts. And if I was to pick the Republican most likely to impose a VAT on America, it would be a corporatist GOPer like Romney. Axelrod, one of Obama’s most trusted […]
[…] system that Romney imposed on Massachusetts. And if I was to pick the Republican most likely to impose a VAT on America, it would be a corporatist GOPer like Romney. Axelrod, one of Obama’s most trusted […]
[…] deal, sort of like a football team trading a great young quarterback for a 35-year old lineman. The VAT would give statists a money machine that they need to turn the United States into a French-style welfare state. This type of national […]
[…] deal, sort of like a football team trading a great young quarterback for a 35-year old lineman. The VAT would give statists a money machine that they need to turn the United States into a French-style welfare state. This type of national […]
[…] deal, sort of like a football team trading a great young quarterback for a 35-year old lineman. The VAT would give statists a money machine that they need to turn the United States into a French-style welfare state. This type of national […]
[…] deal, sort of like a football team trading a great young quarterback for a 35-year old lineman. The VAT would give statists a money machine that they need to turn the United States into a French-style welfare state. This type of national […]
[…] news for taxpayers. From a policy perspective, I’m very much against a VAT because it will finance bigger government, as explained in this […]
[…] Task Force proposes a value-added tax, which is estimated to generate more than $3 trillion between 2012 and 2020. They call this new tax […]
[…] The Task Force proposes a value-added tax, which is estimated to generate more than $3 trillion between 2012 and 2020. They call this new tax […]
[…] The Task Force proposes a value-added tax, which is estimated to generate more than $3 trillion between 2012 and 2020. They call this new tax […]
[…] to travel. But, more important, imagine what American politicians will do if they ever succeed in imposing a value-added tax. The rate initially will be low (just as the original income tax had a top rate of just 7 percent), […]
[…] to travel. But, more important, imagine what American politicians will do if they ever succeed in imposing a value-added tax. The rate initially will be low (just as the original income tax had a top rate of just 7 percent), […]
[…] to travel. But, more important, imagine what American politicians will do if they ever succeed in imposing a value-added tax. The rate initially will be low (just as the original income tax had a top rate of just 7 percent), […]
[…] bad news for taxpayers. From a policy perspective, I’m very much against a VAT because it will finance bigger government, as explained in this […]
[…] news for taxpayers. From a policy perspective, I’m very much against a VAT because it will finance bigger government, as explained in this […]
[…] evidence, Daniels has indicated that he is open to a value-added tax (and energy taxes as well). A VAT would be a fiscal catastrophe for America, paving the way for European-style statism. Here’s an excerpt from Politico. Indiana Gov. Mitch […]
[…] evidence, Daniels has indicated that he is open to a value-added tax (and energy taxes as well). A VAT would be a fiscal catastrophe for America, paving the way for European-style statism. Here’s an excerpt from Politico. Indiana […]
[…] welfare state without a value-added tax, but they don’t want to publicly associate themselves with that view until the political environment is more conducive to success. Most important, they realize that it […]
[…] to fiscal responsibility is a value-added tax, as I’ve explained here, here, here, here, and here. So I’m delighted to see a growing amount of research showing that a VAT is bad news. Jim Powell […]
[…] to fiscal responsibility is a value-added tax, as I’ve explained here, here, here, here, and here. So I’m delighted to see a growing amount of research showing that a VAT is bad news. Jim […]
[…] welfare state without a value-added tax, but they don’t want to publicly associate themselves with that view until the political environment is more conducive to success. Most important, they realize that it […]
[…] welfare state without a value-added tax, but they don’t want to publicly associate themselves with that view until the political environment is more conducive to success. Most important, they realize that it […]
[…] welfare state without a value-added tax, but they don’t want to publicly associate themselves with that view until the political environment is more conducive to success. Most important, they realize that it […]
[…] of the House Democratic leadership urging middle-class tax hikes, and let’s not forgot all the politicians salivating for a value-added tax. Tax cuts that benefit the middle class should not be “totally sacrosanct” as policymakers try […]
[…] of the House Democratic leadership urging middle-class tax hikes, and let’s not forgot all the politicians salivating for a value-added tax. Tax cuts that benefit the middle class should not be “totally sacrosanct” as policymakers try […]
[…] the House Democratic leadership urging middle-class tax hikes, and let’s not forgot all the politicians salivating for a value-added tax. Tax cuts that benefit the middle class should not be “totally sacrosanct” as […]
[…] June 22, 2010 by Dan Mitchell I’ve frequently argued that the main purpose of “taxing the rich” is not to collect more revenue. Smart leftists, after all, understand that there are very strong Laffer Curve effects at the top of the income scale since investors and entrepreneurs have considerable ability to control the timing, level, and composition of their income. So if higher tax rates on upper-income taxpayers don’t collect much revenue, why is the left so insistent on class-warfare taxation? The answer, I think, is that soak-the-rich taxes are a “loss-leader” that politicians impose in order to pave the way for higher taxes on the middle class. Indeed, I made this point in my video on class warfare taxation, and noted that are not enough rich people to finance big government. As such, politicians that want to tax the middle class hope to soften opposition among ordinary people by first punishing society’s most productive people. We already know that tax rates on the so-called rich will jump next January thanks to higher income tax rates, higher capital gains tax rates, more double taxation of dividends, and higher death taxes. Now the politicians are preparing to drop the other shoe. Excerpted below is a blurb from the Washington Post about a member of the House Democratic leadership urging middle-class tax hikes, and let’s not forgot all the politicians salivating for a value-added tax. […]