VAT

Most recently a Progressive [this means a socialist leaning liberal] acquaintance of mine expressed the opinion that the Value-Added-Tax [VAT] just has to be passed and implemented quickly in order to save America from financial ruin. Of course he pointed the finger of blame for this current financial crisis at the Bush Administration and expressed that Obama was bravely addressing the USA debt problem.



As is common with their species, this Progressive elected to tie together some unrelated historical facts and at the same time ignore actions taken by his Progressive hero, Obama.



The following are real facts. When Obama became President our nation owed other countries $3,161,500,000,000.00. That is just over three (3) trillion, 161 billion dollars. In just over one year of his White House rule, this debt has been increased by Obama to $3,750,500,000,000.00. Saving you the need to do some math, this increase in one year has been in the amount of $589,000,000,000.00. To really become concerned, factor in 4 years of Obama government with each year having that same international debt increase.

Our "friends", Communist China, the members of OPEC, Hong Kong (which is really only an element of Communist China) and Russia, hold just over $2,300,000,000,000.00 of this current American government obligation. The Progressives don't see this hoarding of American debt by nations traditionally hostile to America as a threat but rather as proof that these entities see the USA as a good credit risk in some current financial difficulties and are very willing to "lend a hand". It is difficult to believe that even a Progressive can be so naive.

The financial marginalization and collapse of our nation are the only real goals of these foreign primary creditors of Washington.

Now to VAT. This taxation is being quietly, but strongly, promoted through Congress by Obama and is really not a new concept in that Canada and most of Europe have this tax already in place. Some European nations have had VAT since the mid-to-late 1950's. The White House is allowing a notion to be promoted the the income from VAT would allow the quick reduction of the above reflected multi-trillion dollar debt to foreign nations, but there has never been anything like an official statement of any express intent for the proceeds of VAT.

The proposed VAT taxation rate has been placed at 5% but could well end up to be twice that calculation. Exemptions have been hinted at and include food, clothing and all medical costs. Regardless of the possible exemptions, it has been estimated that the top 1% of income earners in America would pay 40% of the annual VAT assessment. The top 5% of income earners would pay 61% of this tax while the bottom 50% of income earners would pay only 3% of the tax total.

If the VAT tax becomes law, it will never be used to pay the US Treasury debts but will promote Obama's desire to equalize all sectors of our population through a federal government financial levy on the top half of American income earners. The VAT income will be used by Obama for community programs and welfare projects. The international debt will remain unpaid and huge.

This undermining of the financial stability of America is truly a dream of Progressive Socialists and unfortunately, Obama daily looks more like a Progressive Socialist.

November 2010 and November 2012 can't come fast enough.