Is a National Sales Tax in Our Future? (Thank you for voting obama)
A debate in Washington could lead to you paying more for everything.
The possible tradeoff? Better health care for all.
Policymakers are debating a value-added tax, or VAT. Put simply, it’s a national sales tax. The concept was dismissed as a nonstarter among policymakers in the past, but is now wiggling its way into political conversation, according to the Washington Post.
From the WaPo:
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.
Some debate that end result, the article says, and argue that the details could work out differently in practice in the U.S. One argument claims that those who are wealthier tend to consume more, and therefore would pay more VAT.
Although the VAT is only an idea at this point and unlikely to hit taxpayers anytime soon, it’s interesting to note that it’s now part of the conversation and that top VAT advocates are now represented in discussions. Especially now as the federal government looks for new ways to create revenue.
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