25% VAT Tax for Health Care Proposed on Capital Hill

…on everything, including food. No matter who you are:

“With budget deficits soaring and President Obama pushing a trillion-dollar-plus expansion of health coverage, some Washington policymakers are taking a fresh look at a money-making idea long considered politically taboo: a national sales tax…”


“First, a VAT would inflict a higher tax rate on the poor than the wealthy because the poor spend more of their income on consumer goods. For many poor Medicaid recipients who currently pay little or no federal taxes, a VAT would likely represent a severe financial hardship. Sessions and Lee state that this effect would be cushioned by adjusting other elements of the tax system, but they do not say how…”

"…A VAT’s Bottom Line

What would it cost? Emanuel argues in his book that a 10 percent VAT would pay for every American not entitled to Medicare or Medicaid to enroll in a health plan with no deductibles and minimal copayments. In his 2008 book, “100 Million Unnecessary Returns,” Yale law professor Michael J. Graetz estimates that a VAT of 10 to 14 percent would raise enough money to exempt families earning less than $100,000 – about 90 percent of households – from the income tax and would lower rates for everyone else.

And in a paper published last month in the Virginia Tax Review, Burman suggests that a 25 percent VAT could do it all: Pay for health-care reform, balance the federal budget and exempt millions of families from the income tax while slashing the top rate to 25 percent. A gallon of milk would jump from $3.69 to $4.61, and a $5,000 bathroom renovation would suddenly cost $6,250, but the nation’s debt would stabilize and everybody could see a doctor…"



Chicago Tribune:
From the Tribune archives: The House Rahm Built

Rahm Emanuel’s brother :

National Institutes of Health
The Department of Bioethics
Our People
Ezekiel J. Emanuel, MD, PhD

…brother of Rahm.

Dr. Ezekiel J. Emanuel, Rahm’s Brother, Tapped For White House Health Care Policy Role


I’m okay with a national sales tax, if done right ( FairTax ), but VATs create wasteful bureaucracy. There is no value in creating a tax that requires tracking all the way through a product’s manufacturing/distributing steps.

couldnt agree more. ESPECIALLY on the FairTax

I’m for a fair tax also.

The proposed VAT will also include food. A gallon of milk. Loaf of bread. I know some who are poor, who this will be a hardship for.

Oh well. These “poor” I know voted for Change.

Have a Blessed Pentecost.
+Peace In Christ. -Dawn

I’m for the Fair Tax also. But how can we have a VAT. President Obama assured the gullible electorate that only those making $250,000 or more would see their taxes raised. Am I missing something here?

Well, you know, he probably meant “income tax.” :wink:

There’s nothing in the article to indicate that Obama favors a VAT.

That is true. We will have to wait and see what sort of tax increases Obama will favor.

well to get it in place obama would have to sign it into law. generally the high ups know what they can and cant get signed, and since theres no way to override a veto(i doubt enough republicians would sign onto this) their willingness to progress makes it seem they know they have the backing.

but comeon. who actually believed obama wasnt going to raise taxes on EVERYONE?

Oh…I don’t know. I think if Obama could find a way to tax wealthy Republicans only, then he would do it. :wink:

Health care will never pass congress unless there is a way to pay for it. Many in congress have said as much. Raising taxes in this economy will be disastrous. :eek:

This won’t happen. Yes, increased taxes on tobacco. Yes, increased taxes on gasoline. Yes, increased taxes on energy. Those can all be done by increments and/or stealth. But across the board, and right out in the open? A non-starter because Obama’s supporters will abandon him if they think he caused the price of all their consumption items to go up in lieu of totally looting the high earners and perhaps sending them to GITMO in the bargain.

In cook county, county president Todd Stroger raised the sales tax by 2%. It pretty much put a huge damper on the county’s economy - just in time for a depression to hit.

Now Obama is talking WHAT??

Just wonderful. If 2% reduces the economy, 25% will pretty much kill it.

Imagine, moving to Canada for the LOWER taxes!

Amazing! The Democrats are supposedly the protectors of the poor but these new and proposed taxes (VAT, food, gasoline, fuel, electricity) are strongly regressive and hit the people with limited income hardest. Fixed income people, people on retirement incomes and annuitized incomes, don’t have an option to work longer hours to take these into account. They just have to settle for lowering their quality of life. How wonderful.:mad:

If you could tax government stupidity, you could pay off your national debt.

3.69 for a gallon of milk?! I pay closer to 5.39 in Canada.
Youse guys have it good…

I am not sure. The present American tax law has so many loopholes that the wealthy can end up paying a smaller percentage of their income than the middle class. I heard that there was one small building in the Cayman Islands which had over 10,000 offices. It is strange, because the small building has fewer than 20 rooms. However, each office has its own address which defines it as a business office for some wealthy American or his company. A VAT would eliminate some of these tax avoidance schemes as you would have to pay a tax every time you bought something. I would favor abolishing the income tax and having instead a VAT tax. However, I would not want to have both taxes. Either one or the other, and better to have the VAT.
One reason for these high taxes is the thirst of the military industrial complex. For example, the USA has spent one trillion dollars to depose Saddam Hussein and put in place a government in Iraq which is unpopular with the Sunni Muslims. Also, it cost more than 4000 lives of young American soldiers, and possibly 100,000 Iraqi lives. Now what? Now we read that the Iraqi and Syrian rebels have taken over Mosul and are getting closer to Bagdad, as the Iraqi soldiers give up the battle for their country. Oh, and wasn’t it the Syrian rebels that were being supplied with US weapons and money? And then what is going to happen in Afghanistan? What happened in Vietnam? All this money, trillions of dollars really spent to what end? At least Saddam Hussein was able to keep the country from falling into the chaotic situation which we are seeing now in Mosul.
As far as health care is concerned, people are being overmedicated with drugs that have unintended harmful side effects. Conventional medicine has a place, but more emphasis needs to be put on natural and healthful remedies. More and more people are investing in pharmaceutical companies because of the profits involved.

$5.39? Where the heck in Canada you live?

You must have a hose running straight to an udder.

If I can get 4 litres (which is LESS than a gallon) for less than seven dollars, I consider it an extremely good deal.

The USA gallon is 4 quarts which is less than 4 liters.

You are not aware that the United States government pays the milk industry huge subsidies to keep the price of milk low. If the US government stopped subsidizing milk and it’s by products it would double in price overnight.

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