Federal Sales Tax/VAT/Consumption Tax -Solution

[August1991]

The US is the only civilized society without a central consumption tax.

Such a tax would solve your federal deficit problems.

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Trump changed SALT.  Like Mulroney with GST, Trump might impose a US federal consumption tax.

 

[herbie]

Sure, and get it all rebated under business expenses. So only working peasants would have to pay it.

[gatomontes99]

On 6/1/2024 at 3:49 AM, August1991 said:

The US is the only civilized society without a central consumption tax.

Such a tax would solve your federal deficit problems.

====

Trump changed SALT.  Like Mulroney with GST, Trump might impose a US federal consumption tax.

 

We have plenty of revenue. What we need is less spending.

Less spending starts with stepping back from being the world's police. Yes, that probably means a lesss stable international political climate, but we can't afford it.

Next we need to phase out all welfare programs. They are not constitutional. Let the states establish and run programs they feel are appropriate for their citizens.

Finally, we have to return to the constitutional requirements for spending. There.are supposed to be budgets, that originate.in the house and then are modified by the senate before both houses of the legislative branch reconcile the differences and send.it to the POTUS for approval. It's been what? A decade or more? Since we had an appropriate budget.

[Michael Hardner]

1 hour ago, gatomontes99 said:

We have plenty of revenue. What we need is less spending.

Less spending starts with stepping back from being the world's police. Yes, that probably means a lesss stable international political climate, but we can't afford it.

Next we need to phase out all welfare programs. They are not constitutional. Let the states establish and run programs they feel are appropriate for their citizens.

 

Those don't seem to be the biggest expenses.

https://en.m.wikipedia.org/wiki/Expenditures_in_the_United_States_federal_budget

[gatomontes99]

9 hours ago, Michael Hardner said:

Those don't seem to be the biggest expenses.

https://en.m.wikipedia.org/wiki/Expenditures_in_the_United_States_federal_budget

How in the world do you get that welfare programs and national defense aren't the biggest spemders? Welfare programs are well over half of all spending. National defense isn't close to that. But it is still astronomical.

[Hodad]

On 6/1/2024 at 4:49 AM, August1991 said:

The US is the only civilized society without a central consumption tax.

Such a tax would solve your federal deficit problems.

====

Trump changed SALT.  Like Mulroney with GST, Trump might impose a US federal consumption tax.

 

A VAT tax thread? Must be that time of the month.

You are obsessed with this subject and start threads on it regularly. 

As always, no thanks. It's a regressive tax that puts a drag on consumption--which is the not a great strategy. 

This is kind of like a Head & Shoulders commercial. The strongest economy in the world is the only one without a VAT tax? Exactly.

[August1991]

On 6/2/2024 at 2:11 PM, gatomontes99 said:

We have plenty of revenue. What we need is less spending.

Less spending starts with stepping back from being the world's police. Yes, that probably means a lesss stable international political climate, but we can't afford it.

Next we need to phase out all welfare programs. They are not constitutional. Let the states establish and run programs they feel are appropriate for their citizens.

Finally, we have to return to the constitutional requirements for spending. There.are supposed to be budgets, that originate.in the house and then are modified by the senate before both houses of the legislative branch reconcile the differences and send.it to the POTUS for approval. It's been what? A decade or more? Since we had an appropriate budget.

At the federal level, you Americans clearly do not have sufficient revenue for what your federal politicians want to do.

-You note military. Good luck.

-Welfare? I tend to agree that it should be a State issue but people move around.

-Constitution? I think we are at a point where the framers could not perceive the future.

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The US federal government has a very generous pay-as-you-go social security scheme. Around the world, millions of Americans expect to receive their monthly cheque.

The US federal government also has a very generous medicaid scheme. Anyone in America over 65 can choose their doctor, Medicaid pays.

[August1991]

On 6/1/2024 at 3:37 PM, herbie said:

Sure, and get it all rebated under business expenses. So only working peasants would have to pay it.

You miss my point.

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Trump changed the way local, state taxes and federal taxes are calculated.

IMHO, you Americans have to change fundamentally how you tax at the federal level.

I reckon that you need a federal consumption tax (collected at the state level).

 

 

[gatomontes99]

18 hours ago, August1991 said:

At the federal level, you Americans clearly do not have sufficient revenue for what your federal politicians want to do.

-You note military. Good luck.

-Welfare? I tend to agree that it should be a State issue but people move around.

-Constitution? I think we are at a point where the framers could not perceive the future.

======

The US federal government has a very generous pay-as-you-go social security scheme. Around the world, millions of Americans expect to receive their monthly cheque.

The US federal government also has a very generous medicaid scheme. Anyone in America over 65 can choose their doctor, Medicaid pays.

They bring in, at the federal level, about $3T a year. That should be enough. But your qualifier makes your statement correct. It is not enough for what the government wants to do. That doesn't mean it isn't enough. They want to over spend.

 

SS isn't the only welfare spending. Medicare, Medicaid, sCHIP, school lunches, school breakfast, summer school lunches, etc etc etc. We spend a ton on that. And $0 is Constitutionally allowed.

As for the Constituion, it is old, but it is law. It is also amenable. We can make changes, if we want. The argument that it is old and doesn't apply to today, does not apply to our Constitution. If it was bad, we would fix it. It hasn't been fixed, so it must not be bad enough.

[August1991]

On 6/5/2024 at 5:19 PM, gatomontes99 said:

They bring in, at the federal level, about $3T a year. That should be enough.

....

Well said.

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Your various American governments can tax people like Bill Gates or the Steve Jobs Foundation.

Your politicians have access to a river - Biden takes a slice of the water.

Putin or Xi could hope for such.