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Obama breaks another promise - get ready for higher taxes

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posted on Apr, 19 2010 @ 06:28 PM
Get ready to open your wallets a little wider. What, you say? There's nothing left in them? Well then, break into your kiddie's
piggy bank, because Obama wants more of your money. His economic team is working on a plan to implement a 5% VAT (value added tax).

What's that you say? You're safe because you make less than $250K/year, and Obama pledged to you that he would not raise any of your taxes.

Oh yes, I can still remember that "Firm Pledge" that candidate Obama made....

Here's the article:

President Barack Obama’s economic team is already calculating government revenues from a possible value added tax (VAT), according toThe New York Times on April 18.

Article excerpt:

But since any Social Security plan would probably preserve benefits for those nearing retirement, it would not help the administration achieve its goal of reducing the deficit to 3 percent of gross domestic product, from 10 percent, within a decade.

One way to reach that 3 percent goal, by the calculations of Mr. Obama’s economic team: a 5 percent value-added tax, which would generate enough revenue to simultaneously permit the reduction in corporate tax rates Republicans favor.

As for the pledge? Well, you must have mis-heard Obama. Yeah, that's it. You misunderstood, because he was only talking about income taxes, he now says.

The reported VAT calculations may explain President Obama’s recent attempts to alter the terms of his central campaign promise — a promise that no family making less than $250,000 per year would see “any form of tax increase.”

Twice in the past 10 days, Obama has claimed his pledge applied only to income taxes. In his April 10 Weekly Radio Address, Obama said: “And one thing we have not done is raise income taxes on families making less than $250,000. That’s another promise we’ve kept.”

In a speech on the evening of April 15, Obama repeated the truncated promise: “And one thing we haven’t done is raise income taxes on families making less than $250,000 a year — another promise that we kept.

Hope and change. How's that working out fer ya?

posted on Apr, 19 2010 @ 06:39 PM
reply to post by mishigas

That is 5% for every step that adds value. That going to be so exciting to pay more for everything we buy.

Just think how fantastic life will be when we are paying a VAT and increased gas and energy taxes to save our wonderful planet. Even though all the money in the world wouldn't make a damn bit of difference.

I cannot wait to vote.

Why can't they cut all the government programs down until they can afford them? Get 2 trillion in tax revene and you still can't spend within your means. Why should we think 4 trillion in tax revenue is going to be enough for them to get their fill?

posted on Apr, 20 2010 @ 12:39 AM
I think someone has a complete misunderstanding of or you.

So far as I understand it VAT is taxed at every level of purchase, from manufacturer to distributor to buyer. Right now only the buyer is taxed.

What a lot of people seem to be equating it to is the buyer being taxed more (15%) because the distributor is taxed more (10%) because the manufacturer is taxed more (5%) and so on and so forth...this isn't how I understand it at all.

It's a VALUE added tax, which means the item is taxed 5% of it's value at every level. If the manufacturer and distributor start saying that a gallon of milk is worth more than it was before the VAT they're lying. It's worth the same, they're just charging more.

It's like saying the price of milk increased 20 cents because the tax increased 1 cent...the manufacturer is going to make obscene profits while laying the blame for price increases on the government. Thereby leaving the consumer scratching their head and demanding lower taxes for bigger companies so they can pay less.

Hmm...I wonder why Wal-Mart is so couldn't possibly be the amount of tax subsidies they recieve from local governments allowing them to drive down their prices, destroy the competition and then subsequently increase their prices while still recieving tax subsidies...a major corporation in a capitalist economic system would never put greed before anything else!!

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