Raising Revenue with a Progressive Value-Added Tax

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uncledad
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Raising Revenue with a Progressive Value-Added Tax

Unread post by uncledad »

What happens if the D-progressive (socialists) build a VAT.

This is pretty long, to summarize:

the VAT should complement, not substitute for, new direct taxes on the wealth or income of affluent households

be coupled with adjustments to government means-tested programs to account for price level changes

a universal basic income (UBI) program

Federal Reserve should accommodate the tax by allowing prices to rise

A 10 percent federal VAT that funded a UBI equal to 20 percent of the federal poverty line would be highly progressive (with net income rising among the bottom forty percent and not changing in the middle quintile) and would still raise more than 1 percent of GDP in net revenue.

https://www.hamiltonproject.org/assets/ ... _01.13.pdf

List of Countries tax by tax rates (what VAT countries did with income and corporate taxes)

https://en.wikipedia.org/wiki/List_of_c ... _tax_rates

I doubt there's a VAT in the future that replaces income taxes.

and the R side ...

. But the destination-based cash-flow tax that House Speaker Paul Ryan and Ways and Means Committee chair Kevin Brady proposed in the 2016 Republican “Better Way” blueprint is just a VAT with a wage deduction (Ryan and Brady 2016). VATs are embedded in Ryan’s “business consumption tax,” libertarian Kentucky senator Rand Paul’s “Fair and Flat Tax,” 2012 Republican presidential candidate Herman Cain’s “9-9-9” proposal, and Republican senator Ted Cruz’s “Business Flat Tax” 2008; Paul 2015; Urban-Brookings Tax Policy Center 2011; Cruz Campaign 2015)

https://taxfoundation.org/details-and-a ... eform-plan

https://www.forbes.com/sites/beltway/20 ... -is-a-vat/

https://www.forbes.com/sites/danielmitc ... added-tax/

+++ You may crawl through the weeds, but to save you time, a VAT is a VAT. You can not trust one politico from the next.

and a little from the WSJ...

Here’s some of what the Wall Street Journal has to say about “reforms” to the value-added tax in the land of the rising sun.

Japan on Tuesday increased its consumption tax to 8% from 5%. An increase to 10% is written into the law for next year, and don’t imagine for a minute that this will be the last. Welcome to the value-added-tax ratchet, which only goes in one direction—up. Tokyo first imposed a 3% consumption tax in 1989, after politicians had tried for a decade to enact one. …The new tax was billed as part of a tax reform, but the reform never materialized.

https://danieljmitchell.wordpress.com/2 ... more-debt/
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Re: Raising Revenue with a Progressive Value-Added Tax

Unread post by Charlie Mike »

UBI is a non-starter.
I'm not here for peace. I have no interest in it. You had your chance. You will either cease, or it will get worse.
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Re: Raising Revenue with a Progressive Value-Added Tax

Unread post by Slayer »

That’s a lot to digest. I thumb through the wiki list on different countries structure.

I noticed that their appear to be no taxes in Somalia.

I have to agree with vercinge on the tax front. Flat tax. Even a progressive flat tax would be better than what we have right now. Damn near 61% of the American public pay zero federal income tax. I’ve always felt people with some skin in the game might take more interest in their government and how it spends their money.
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Re: Raising Revenue with a Progressive Value-Added Tax

Unread post by uncledad »

Slayer wrote: September 14th, 2021, 10:03 am That’s a lot to digest. I thumb through the wiki list on different countries structure.

I noticed that their appear to be no taxes in Somalia.

I have to agree with vercinge on the tax front. Flat tax. Even a progressive flat tax would be better than what we have right now. Damn near 61% of the American public pay zero federal income tax. I’ve always felt people with some skin in the game might take more interest in their government and how it spends their money.
An overhaul of the current setup leaves it in the hands of the people who make a living pandering to those who fund their campaigns. The fox in the hen house might not be your fox at the time a change was made.
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Re: Raising Revenue with a Progressive Value-Added Tax

Unread post by Slayer »

uncledad wrote: September 14th, 2021, 11:26 pm An overhaul of the current setup leaves it in the hands of the people who make a living pandering to those who fund their campaigns. The fox in the hen house might not be your fox at the time a change was made.
Yes it does. That is why I also advocate for campaign finance reform. Citizens United might very well be tipping point for our country. In my opinion.

I’m not real fond of Biden’s proposed plan either. We need something that encourages and incentivizes the ultra wealthy to invest in actual industrial endeavors and the like. And not Amazon stock. I believe in taxing the wealthy, don’t get me wrong. Just levying a tax willy nilly isn’t the answer. Again, in my opinion.
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Re: Raising Revenue with a Progressive Value-Added Tax

Unread post by uncledad »

Slayer wrote: September 15th, 2021, 9:26 am Yes it does. That is why I also advocate for campaign finance reform. Citizens United might very well be tipping point for our country. In my opinion.

I’m not real fond of Biden’s proposed plan either. We need something that encourages and incentivizes the ultra wealthy to invest in actual industrial endeavors and the like. And not Amazon stock. I believe in taxing the wealthy, don’t get me wrong. Just levying a tax willy nilly isn’t the answer. Again, in my opinion.
To go back to the idea of having skin in the game, the political incentive isn't there to pull or push corporations to comply as administrations change hands. The laws past may have had the intent to level out how taxation is reformed, not funding the implementation wasn't an oversight.

Just as de-regulation was and is touted as the cure all to the stagnation of the US economy, in reality it was the preliminary work to export manufacturing out of the US, the tax code was used to underwrite the process.

JB floated an idea that appeals to social democrats in the EU and here in the US. The corporate side D's and R's will put it off for as long as they can. Expecting a change in the 2022 composition of the Congress.

Citizens United was an extension of oligarchic control imposed by the SCOTUS. To date neither party is willing to risk its patrons' sponsorship.
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