Today’s post is a guest post from a friend. I find itÂ relevantÂ because very soon the President and The Congress are going to ask for a Value Added Tax.
The VAT is essentially a national sales tax, levied in proportion to the goods and services produced and sold. But its delightful concealment comes from the fact that the VAT is levied at each step of the way in the production process: on farmer, manufacturer, jobber and wholesaler, and only slightly on the retailer. Source: See Link Below
I believe that as you raise taxes business slows and moves off shore taking it with it jobs. Giving money to the government doesn’t add more workers and it doesn’t build more wealth. Â Its a parasite on America. Â The rest of this post is from my friend.
As a spiritual man there are many facets of my life I accept on faith. There are things I simply accept as true, not because I have a deep understanding of them, but because I 1) feel they are true and, 2) have come to trust the source based on prior experience.
Over the last five or six years I have become a casual student of economics in conjunction with my increasing obsession of all things political. During my studies I have stumbled upon the Ludwig von Mises Institute, “the research and educational center of classical liberalism, libertarian political theory, and the Austrian School of economics”.
I have developed a deep respect and appreciation for the men who have pioneered the Austrian School of economics in America; namely Ludwig von Mises, and Murray N. Rothbard (1926-1995).
Recently I sent an e-mail endorsing the value-added tax as the most fair and equitable taxation system in the world today and suggesting that the United States would do well to move into the 21st century by abolishing the existing tax code in favor of this system.
Today I read Rothbard’s article The Value-Added Tax Is Not the Answer first published in the conservative magazine Human Events on March 11, 1972.
In that article Rothbard describes his disdain for the system in very basic and abstract language riddled with opinion. No where does he cite statistics or sources. It is primarily a moral objection. I won’t pretend to understand all that is written in the article or all the ramifications of a tax code, but I have to tell you, that if Murray N. Rothbard doesn’t like it, it’s probably not good for you. At this point in my education I will accept that on faith.
So what is the answer to our tax woes? President Obama is seriously considering implementing a value-added tax on top of our already burdensome federal income tax. I believe the answer, as Rothbard surmises in this article, that the solution is not more taxes or creative taxes or shifting tax liabilities, but the simple reduction of expenditures. The tax code needs to be simplified and the burden needs to be distributed equitably. The system for taxation is less important than the fiscal irresponsibility’s of our government.
You won’t hear me talk of a consumption or value-added tax anymore. Thought you should know.