DownsizeDC.org
April 22, 2010
Taxes: Don't be boiled in the VAT
By James Wilson

Quote of the Day: "Nothing is official, until it has first been denied." -- Jerry Hughes, radio talk show host, and a friend of Downsize DC

You probably have a fundamental disagreement with the politicians who represent you . . .

* They think your money is their money, and they determine what your "allowance" will be
* You probably think that you are not a slave, and that you work to fulfill your own dreams, not theirs

Consider -- If you had a choice, would you rather give your money to . . .

* The Department of Housing and Urban Development, or Habitat for Humanity?
* The Department of the Interior, or groups like the Nature Conservancy and Ducks Unlimited?
* The Department of Education, or a local private school?
* The National Institute of Health (NIH), or St. Joseph's Hospital and the Shriner's Hospitals?

If you're like me, the NIH is the only bureaucracy that might spark a glimmer of interest. But I must wonder, if state-directed medical research is really such a great thing, why must it be funded at gun point?

Other State efforts provoke similar questions. And I can summarize my answers as follows . . .

There's nothing the federal government does that I value anywhere near as much as it costs. I would gladly choose a private, voluntary alternative for nearly every so-called "service" The State provides. I even think it screws up national defense, creating more enemies for me than it actually kills or constrains. 

If I could fire my so-called government, I would. But I can't -- it's a monopoly protected by violence and intimidation, with the result that . . .

There doesn't seem to be any limit to how much of my money the know-it-all, busy-body politicians want to spend. They have no brakes. However . . .

Since the bond market does place a severe limit on how much money The State can borrow, there is more and more talk of raising taxes. In particular there's now a great deal of talk about a federal VAT.

VAT stands for Value Added Tax. A VAT is like a sales taxes except that the state and local sales taxes you're used to paying are only imposed at the final point of sale. By contrast . . .

A federal VAT is a sales tax imposed at EVERY STEP from production through distribution to final sale. In other words, the tax would be imposed at every point at which value is added to a product. That's why they call it a "value-added" tax. 

We expect President Obama's current commission on the federal deficit to recommend a VAT. Now, the Obama administration has been quick to deny that it wants to impose a VAT, but we don't believe it. When politicians' move their lips, there's a considerable chance they're lying, and any denial is usually a prelude to confirmation. So you need to decide . . .

* Do you want to pay more taxes, or do you want the politicians to cut spending?
* Are you going to tell them what you want, or will you sanction what happens by remaining silent?

Resistance is simple.I just sent a letter to Congress, using DowsizeDC.org's "cut spending" campaign.

You can copy or borrow from what I said in my letter . . .

You are spending too much, and borrowing too much. This must end. You must balance your books. And you must do it by cutting spending -- NOT by increasing taxes. Please pay special attention to the following -- NO Value Added Tax!

END LETTER

Remember, Congress cannot hear what you do NOT say.

You can send your own letter to Congress using DownsizeDC.org's Educate the Powerful System.

Please forward this Dispatch to others, and ask them to also send letters to Congress opposing a Value Added Tax.

Perry Willis
Vice President
DownsizeDC.org, Inc.

P.S. This Downsizer-Dispatch was made available to you courtesy of our monthly pledgers. Please consider joining them by starting a monthly, credit card pledge. Here's our secure contribution form: https://secure.downsizedc.org/contribute/

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