Sunday, November 29, 2009

A VAT Full of the Same Old Stuff

In a Newsmax article written by Theodore Kettle, something similar to a Value Added Tax within the Senate Health Care Bill was highlighted


As the article points out the bill – {“Each covered entity engaged in the business of manufacturing or importing medical devices shall pay to the [Treasury] Secretary not later than the annual payment date of each calendar year beginning after 2009 a fee in an amount determined under subsection (b).”} In other words the fee is just another word for tax on the business.

While this is a way not to raise the taxes on individuals, the cost of those devises will have to be raised in order to cover the cost of the fee or tax. That will only raise the cost of health care.

So in the big picture the only free health care in this or any reform will go to those who pay no taxes. I hate to beat a dead horse but this is just another example of “redistribution” of the wealth of this country. People who are paying for their own health care and companies who are paying or subsidizing health care for their employees are the ones who will pay more through fines or fees to insure those who refuse to or cannot.

As Europe has found out and is rebelling against, government run health care under any name or guise does not work and results in lower quality care. The article above points that out.

Further evidence can be found in a Heritage article written in 1991 by William D. Eggers

This article is worth a read to help define the arguement about the struggle within tax reform circles between “redistribution of wealth” vs those policies directed toward economic growth. In the article Eggers had this warning about Value Added Tax.

{Point No. 3: Be wary of the Value Added Tax (VAT Consider it only in lieu of, not in addition to, income taxes; and adopt political safeguards to ensure that theVAT is not used to fuel the growth of government as it has been in Western Europe and elsewhere}

I like to point out in the above quote the part that specifies "only in liew of, not in addition to, income taxes". When liberals call it a “modified sales tax” they mean in addition to the income tax and seems a cheap effort to win over the “Fair Tax” people. They even use the “tax rebate” language, but understand this is just a fee or tax on business on top of income tax. This is a detriment to growing capital.

One must remember that Reagan formed his tax reform policies along the same lines as Kennedy did in his tax bills, in favor of Growth. Growth of Capital, they both worked.

Regards, Live Dangerously Be A Conservative

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