Taxing The Poor To Bail Out The Rich

That’s what it’s all about these days. Ian Welsh:

Value Added Tax (VAT) version:

When House Speaker Nancy Pelosi told Charlie Rose last October that a value-added tax was “on the table” as a possible way to solve the nation’s fiscal woes, the remark didn’t generate much interest. But as recent budget figures have put the depth of America’s problem into black and white, and with former Federal Reserve Chairman and White House adviser Paul Volcker nearly secondingPelosi’s view recently, the idea of a VAT — already in use in nearly 160 countries — is gaining traction.

Trillions were spent to bailout bankers, and every dollar spent fixing the mess since then is also effectively caused by the failures of the rich.

A VAT isn’t necessarily evil, but until progressive taxation is restored, capital gains are taxed at the same level as ordinary income, corporations are forced to pay taxes on their actual profits (rather than making billions and paying no taxes) and a financial transactions tax is implemented, why is another regressive tax (one that hits the poor instead of the rich) even being considered?

Oh, yeah, because this government exists to do unpopular things Republicans want to do while allowing Republicans to vote against them, as with Medicare, essentially a 1994 Republican plan.

With Democrats like these, who needs Republicans?

I was thinking today that I didn’t think I could ever bring myself to vote again. I just don’t see the point.

7 thoughts on “Taxing The Poor To Bail Out The Rich

  1. I’m curious. How did the “Poor people are bad” idea get so much traction? Reagan could have only tapped into that sentiment. How did it get so strong? How did we fall so far from the Roosevelt ideal?

  2. the idea of a VAT — already in use in nearly 160 countries

    Do we know if those 160 countries also have state and local sales taxes? A national sales tax (vat by another name) added onto local sales taxes is going to be extremely regressive.

  3. In Pennsylvania you have legislative house candidates who actually DID vote for single payer. If one of them represents you, I hope you will vote for them.

    Otherwise I am with you, Dems at the federal level clearly regard us as pawns.

  4. See, I think that’s the exact sentiment that fuels the Tea Party. I understand the frustration and anger, except I know better than blaming the Liberals, Illegals, Blacks, what-have-you.
    I know exactly who to blame, and it’s both the Democrats and the Republicans alike. It’s the entire system of the self-proclaimed ‘Greatest Democracy in the world’, which it’s not.
    It’s no longer a ‘Government FOR the people BY the people’, unless you count at ‘the people’ the upper 2%. It’s a disguised monarchy – they just don’t call themselves princes and such.

    The only way to really take it back is to elect people FROM the people, not just the rich. I mean, look at what Meg Whitman is doing in order to obtain Governorship of the 7th (or is it 8th, 9th, 20th?) largest economy in the world. She’s trying to BUY it. Do you think that a government FOR and BY the people – that the current system would even REMOTELY consider, say YOU, as a Candidate??

    It is indeed entirely disgusting, and I do believe the disillusioned Progressives should join/take over that Tea Party business.

    I’m not a US citizen (if I were straight I could’ve had dual citizenship), but I know I don’t want to give up my Dutch citizenship.
    Call me a coward (some do) – I call myself a realist/pragmatist.
    I KNOW that if anything were to happen to me – my country would take care of me. Can you say the same about yours???

  5. At least one European country has a 19% VAT. That’s double any combined sales tax (state + local) in the US.

    But in Europe, people get something for their taxes — health care, culture, good public transportation, true high-speed internet.

  6. I believe things are only going to get worse as long as we are funding two (or more) endless wars.

    Democrats will always TALK about social issues as if they are on the same side as me. But, they aren’t nearly as committed to stopping the wars. Unless a candidate is willing to stand firmly against remaining in Iraq and Afghanistan and is firmly against expanding the war into Iran or whatever other fantasy might strike their mood — I’m not voting for them.

    Aside from my deep morality-based objections to those wars :: they are bleeding us dry. They are the excuse and the tool for transferring OUR money to the wealthy.

    I was wrong those last two election cycles to use Health Care as my single issue. From now on, I’m an Anti-War Voter — and there isn’t an anti-war candidate….. Well, I don’t know. There has to be SOME way to make it clear why I’m not voting for the Democrats any more.

    (I’m just thinking this through — I don’t know what I’m going to do)

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