President Obama advisor and former federal reserve chairman Paul Volcker starts toying with the national VAT tax. This is similar to our 5% GST and similar to the 20% seen in many European countries.
The U.S. should consider using a European-style value added tax to help bring the deficit down, said White House adviser Paul Volcker in response to a question from CBS MoneyWatch.com at a panel discussion in New York City Tuesday night. “We have to think about really revamping the tax system,” said Volcker, who’s best known for successfully beating down inflation while serving as Ronald Reagan’s Federal Reserve chairman. The VAT, a levy on all the goods and services you consume, is not a “toxic idea,” he added.
Don’t say we didn’t warn you about the potential of getting OfficiallyScrewed.
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The other thing about VAT is that it’s embedded in the price. That way, you don’t get an extra shock at the till: what you see on the shelf is what you pay. The shock is when you read your bill and find out how much tax you’ve paid, and at what rates.