With budget deficits soaring and President Obama pushing a trillion-dollar-plus expansion of health coverage, some Washington policymakers are taking a fresh look at a money-making idea long considered politically taboo: a national sales tax. Common around the world, including in Europe, such a tax -- called a value-added tax, or VAT -- has not been seriously considered in the United States. But advocates say few other options can generate the kind of money the nation will need to avert fiscal calamity.A VAT is a tax on the transfer of goods and services that ultimately is borne by the consumer. Highly visible, it would increase the cost of just about everything, from a carton of eggs to a visit with a lawyer. It is also hugely regressive, falling heavily on the poor. But VAT advocates say those negatives could be offset by using the proceeds to pay for health care for every American -- a tangible benefit that would be highly valuable to low-income families.
Liberals dispute that notion. "You could pay for it regressively and have people at the bottom come out better off -- maybe. Or you could pay for it progressively and they'd come out a lot better off," said Bob McIntyre, director of the nonprofit Citizens for Tax Justice, which has a health financing plan that targets corporations and the rich.
What the Moderate Republican Stands For
Republicans came to power as the party of big ideas, and without returning to that model they could be looking at a long winter. Additionally, those big ideas need to focus on Middle America. Three issues that could work are conservation, reform and localism.
Conservation- a return to the Teddy Roosevelt model of conservation. One doesn’t necessarily have to buy into global warming to appreciate the need to protect the natural resources we have.
Reform- the federal government is bigger than ever, and won’t be getting any smaller over the next four years. Republicans need to fashion themselves as national reformers. Much of Middle America wants the government as safety net, but bloated bureaucracies breed corruption that needs to be dealt with.
Localism- this is the lynchpin that brings it all together. If we bought our food locally, shopped locally, governed locally, many of the issue we now have to deal with would go away, or at the least become manageable.Below is a collection of writers who speak about the things that matter. Some are Right, some Left and some Center, but all intelligent and rational voices.
The Soap Box
1 comments:
A number of countries have VAT, some at extortionary rates. It is regressive, like any sales tax and it can tend to be anti-business when low-end consumers have to stop consuming. An advantage is that it would be semi-optional for
non-necessity consumer goods. I don't care for the concept.
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