Is a VAT needed for America?
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  Is a VAT needed for America?
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Author Topic: Is a VAT needed for America?  (Read 1063 times)
Republican Left
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« on: October 25, 2019, 05:31:51 PM »

In order to balance the budget and supporting investments like infrastructure and research?
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True Federalist (진정한 연방 주의자)
Ernest
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« Reply #1 on: October 26, 2019, 12:24:34 PM »

No. For fiscal stability we need higher taxes, but VAT is a consumption tax and thus not helpful to our economy.
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RI
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« Reply #2 on: October 26, 2019, 01:53:23 PM »

No. For fiscal stability we need higher taxes, but VAT is a consumption tax and thus not helpful to our economy.

Consumption taxes, if properly designed, are good for the long term economic growth of a country as they encourage savings and investment.
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True Federalist (진정한 연방 주의자)
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« Reply #3 on: October 27, 2019, 09:43:42 AM »

No. For fiscal stability we need higher taxes, but VAT is a consumption tax and thus not helpful to our economy.

Consumption taxes, if properly designed, are good for the long term economic growth of a country as they encourage savings and investment.

That is if there is a lack of investment capital in the economy.  I don't think anyone serious would say that is the case for the US economy.  Besides, the Republicans have repeatedly shown, and not just at the Federal level, they are incapable of properly designing taxes, and under the current politics, I can't imagine Democrats backing imposing a VAT.
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Archon
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« Reply #4 on: October 28, 2019, 12:19:49 PM »

No, it would hurt the poor
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Sam Smith
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« Reply #5 on: November 10, 2019, 10:11:40 AM »

I could support the VAT if the Income Tax,Payroll Tax & the Corporate Tax is gone.
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Kingpoleon
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« Reply #6 on: November 10, 2019, 08:21:04 PM »

I could support the VAT if the Income Tax,Payroll Tax & the Corporate Tax is gone.

How high do you want a VAT to be?
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Sam Smith
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« Reply #7 on: November 17, 2019, 01:21:58 PM »

I could support the VAT if the Income Tax,Payroll Tax & the Corporate Tax is gone.

How high do you want a VAT to be?

Not higher than 15%!
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Kingpoleon
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« Reply #8 on: November 17, 2019, 01:51:35 PM »

That would raise $1 to $1.1 trillion annually. Do you have any suggestions to lower spending to match?
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Sam Smith
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« Reply #9 on: November 17, 2019, 02:36:15 PM »

That would raise $1 to $1.1 trillion annually. Do you have any suggestions to lower spending to match?

I believe in a very small Government. I don't believe we should have a warfare state &  & I don't believe we should have a welfare state either.

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mileslunn
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« Reply #10 on: November 21, 2019, 01:09:49 AM »

Hell yes.  US is the only industrialized country and one of the few in the world without a VAT.  With a $1 trillion deficit, there aren't enough spending cuts available and you cannot grow your way out of that when economy is running on all cylinders.  So you need to raise taxes somewhere and most economists say consumption taxes least harmful to growth, income taxes fall in between, while corporate taxes are most harmful. 

In Canada where I live, I've been pushing for us to raise our VAT (GST it's called) to 7-10% from its current 5%.  With a VAT, over time there is enough revenue for even bigger tax cuts if you are on the right or enough to fund many social programs left wants but are currently unaffordable.  Corporate taxes in US are similar to most of Europe, while income taxes a bit lower but the difference is not big enough to explain much weaker social safety net or much larger deficit.  The big difference is in Europe VATs are 20-25% so that is where they get the revenue to fund much larger welfare states, have smaller deficits, and still keep corporate and income taxes reasonably close.
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