Even though nobody wants to admit that socialism is the only solution to America’s economic problems, people are now talking about the “Value Added Tax”.   The problem with VAT is it hits the lower income people the hardest as it is a bigger percentage of their income.  It is regressive and not progressive like income taxes.  Everybody who makes less than a living wage cannot afford to pay VAT.

Republicans will object to the VAT because they object to all taxes.  However, the VAT is the closest thing the Republicans will ever see to a flat tax.   In fact, the Republicans would have been better off abandoning income taxes and letting it be replaced with VAT a long time ago.  But, Republicans are so greedy that it makes them stupid.  If the U.S. was already using VAT then everybody would pay the same national sales tax on consumption.  It would also tax lower income people higher which has always been a goal for Republicans.  This is exactly the opposite of the present income tax and would let rich, greedy Republicans keep more of their money.

It would be better to have a progressive VAT that goes up as a person’s income increases.  This could be implemented with a national credit card.  The country already has much of the infrastructure it needs for such a system.  In fact, the U.S. already has major interests in many of the largest banks.  Unfortunately, the U.S. should have nationalized the banking system which has been advocated on this blog many times.

No matter how you slice it, taxes are going up in America — way up.  They have to increase because jobs are being destroyed.  Unless American wants to let  people starve in the streets, taxes are going higher.  This is the path toward socialism which is inevitable.  Unfortunately, it is moving too slowly, most people are still in denial, and the true extent of America’s financial problems are still be covered up.   As a result, there is going to be lots of pain for 95% of the population.

America is doomed.