VAT tax. Helluva an idea

twistedchick has a piece on the Tax Fairness act here

So I got curious.

It abolishes all federal income tax. So all the money you pay would go right back in your paycheck.

In 2002, we paid $2100 in Federal taxes. Sounds good so far. That's about $175/month Who couldn't use that? There is no effect on state taxes, so the $853 we paid Arkansas will not change.

However, EVERYTHING you buy will be taxed at 23% more. Dude, that's a 33% sales tax in these parts! 35% on prepared foods.

In the last 12 months, we spent 3277 on groceries.
$1528 on household items
$8097 on Other, including clothes, books, gifts, fabric, yarn and all the ther stuff
$6753 on educational materials (including swimming lessons and band camp)

Total=16378
Using the 23% VAT, we would pay another $3767

Add 2146 on dining out, for an extra $493


We are now paying $4260 in taxes.
Before we were paying $2100.

This is fair, how?


And the tax rate will change after the first year. Some estimate it will go as high as 45%, which is how much it will take to keep the US running.

We would be paying $8335/ year in sales taxes.
Buying less is almost not an option as it is.

We aren't well-to-do. In 2002 we made over 62K. In 2005, we'll make about 55K. We're middle-class.


So don't just write your congresspeople. CALL them!

Meme sheep

1. Go here.
2. Pass it on.
( my answers )