Life after Obamacare?

The next step in the incremental process by President Obama and the Democrats is a European style Value Added TAX (VAT).


The President and Congressional leaders know that this monstosity of a Healthcare Reform law is not going to be paid for with $500 Billion in savings to Medicare... despite all their claims otherwise. That is what they told us to get the bill passed. EVERY European country with Universal Healthcare, has a VAT. It is a HUGE revenue source to the centralized Federal government, and it is coming BEFORE the benefits start being paid out in 2014!


Here are some of  the highlights of the European VAT:

• a general tax that applies, in principle, to all commercial activities involving the production and distribution of goods and the provision of services.
• a consumption tax because it is borne ultimately by the final consumer. It is not a charge on businesses.
• charged as a percentage of price, which means that the actual tax burden is visible at each stage in the production and distribution chain.
• collected fractionally, via a system of partial payments whereby taxable persons (i.e., VAT-registered businesses) deduct from the VAT they have collected the amount of tax they have paid to other taxable persons on purchases for their business activities. This mechanism ensures that the tax is neutral regardless of how many transactions are involved.
• paid to the revenue authorities by the seller of the goods, who is the "taxable person", but it is actually paid by the buyer to the seller as part of the price. It is thus an indirect tax.

Now do not think for a moment the VAT will replace the current Income Tax system. The VAT will be an additional tax on the consumer... we are talking about an additional 20% tax on retail purchases. Some items, could be excluded, like food. In addition, there is likely to be a threshold where persons earning below the line, get a tax credit so they are not unduly burdened with this new tax.


Down the road also, the Democrats will be looking to confiscate all private retirement plans... 401k, IRA, ROTH, 529, Pensions, etc. Why would they do this you ask? What better way to bail out the about to be bankrupt Social Security program? Not Possible, you say! No politician would have the cajones to impound your retirement money? 


Really, the same politicians who nationalized healthcare, took over 2 US Automakers,  hired a Pay Czar to regulate salaries! Really? The lawmakers in Washington proved with the healthcare reform bill, that while most Americans agree reform is needed, but do NOT like this flavor of it, they do not care what the constituency wants!