…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…"
From the Tribune archives: The House Rahm Built
Rahm Emanuel’s brother :
National Institutes of Health
The Department of Bioethics
Ezekiel J. Emanuel, MD, PhD
…brother of Rahm.
Dr. Ezekiel J. Emanuel, Rahm’s Brother, Tapped For White House Health Care Policy Role