Should the US adopt a VAT tax?

[Viper1]

Joelcool7 said:

Viper1 said:

I understand the difference, just keep in mind that if no states had state sales taxes, those states would push to get that lost revenue from the federal government which means the regular taxes would pay for it instead.  Therefore, it works like VAT, only indirectly and at the state level.

As for desperate times requiring desperate measures, why tax instead of cut?   Taxation is already crazy, spending is even crazier.  Taxing just to give them more money to spend with?  That batshit nucking futty.  The government would never use a tax to pay down the debt...they'd just spend it.

I wonder what the American people would say if suddenly public transit, education and other services were cut to help pay off the debt. The US Government is too worried about being re-elected to do anything whether it be add taxes or cut existing services. nearly 15-trillion dollars is far to much for the US to raise by just cutting back. The country is growing and the amount of people dependant on the services is growing.

Also while I guess some states may have high taxes others don't. The US Gov needs to bring in money and they need to do so fast. They can't just continue going into debt. Desperate measures are needed to ensure the US doesn't go down. A little tax like 5% wouldn't kill America and it would probably be prefered by American's rather then cutting back spending by 5-trillion dollars or more.

In the end I doubt American's will take either cuts nor tax raises without whining and complaining. But theirs a reason us VAT countries aren't suffering as bad as America. As for the American Government blowing all of its money without paying off taxes, you may be right but I have a feeling that the rest of the world is going to run out of patience and the US will have no choice but to pay back its debt!

Joe, here's the plan.  Freeze all current spending levels.   Cut 1% off the top of everything every year for 5 years.  The budget is now balanced and we start paying down the debt.

No increase in taxes, and I'm certain people would prefer a 1% reduction in spending over 5% increase in taxes.

 

VAT coutnries aren't suffering as bad as America?  Are you sure of that?   Go look at a debt to GDP chart.  Ireland, Belgium, Iceland, Italy and Greece all have a higher debt to GDP than the US.  Following right on the heels of the US are: France, Portugal, Canada and the UK.