Home     About Us    Contact Us     Contribute     Privacy
Investing
Stocks
Bonds
Mutual Funds
Biz
Credit
Career
College
Economics
Tax
More
 
 
Marketplace
Related Articles
More
Related Definitions
Related Categories
Tip of the Day

Tip of the Day Borrow No More Than 30% of Your Available Credit

Borrow No More Than 30% of Your Available Credit - You should borrow no more than 30% of your available credit each month if you wish to keep your credit...

read entire tip

Related Podcasts
Recently Added
Other Great Sites
 

Federal Tax Sales

While the United States has long had federal sales taxes on specific products such as gasoline, Congress has never -- and, many believed, would never -- consider imposing what most of the rest of the world calls a VAT, aka value-added task.

Recently, however, skyrocketing budget deficits (the federal financial sector bailout alone has indebted every man, woman and child in America to the tune of roughly $46,000), has severely shifted the tectonic plates beneath the bedrock belief that the VAT could never happen here.

In fact, some Washington policymakers are taking a fresh look at a money-making idea long considered politically taboo: a national sales tax.

Although it is fairly common around the world, including in Europe, the VAT has not been seriously considered in the United States. But experts claim few other taxes can generate the kind of money the nation will need to avert fiscal chaos.

At a White House conference earlier this year, a bunch of tax experts pleaded with Treasury Secretary Timothy F. Geithner to consider a VAT. And recently, after arguing with the White House over the massive deficits projected under Obama's policies, the chairman of the Senate Budget Committee declared that a VAT should be part of the debate.

Since a VAT is a tax on the transfer of goods and services it is ultimately paid by the consumer. VATs tend to increase the price of just about everything, from a gallon of milk to a visit with a lawyer. It is also hugely regressive, being especially hard on the poor.

But VAT fans say those negatives could be dealt with and improved upon by using the proceeds to pay for health care for every American. This would turn the VAT into a tangible benefit that is definitely needed by low-income families.

A White House official said a VAT is "unlikely to be in the mix" as a way to pay for health-care reform. "While we do not want to rule any credible idea in or out as we discuss the way forward with Congress, the VAT tax, in particular, is popular with academics but highly controversial with policymakers," said Kenneth Baer, a spokesman for White House Budget Director Peter Orszag. Time will tell if the VAT will work out for our country.

Discuss It!
Most Popular Articles
Most Popular Definitions
 
Daily Definition

Definition of the Day Minority Interest

Minority Interest - Minority Interest is shareholders whose combined shares represent less than half of the total outstanding shares issued by a corporation have the minority interest in that corporation. In many cases, the collective holdings of the minority shareholders are considerably less than half of the total shares. In...

read entire definition

 
 

 

 

Home     About Us    Contact Us     Contribute     Sitemap

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Copyright © 2009 TeenAnalyst.com