VAT Man Cometh?

" Bolivia economy tries to clients way out of the recession the feds are trying to find the money from more and more programs there's been talk in Washington batting. Some Big -- vat or value added tax. Speaker Nancy Pelosi the latest Democrat to jump on the -- bandwagon saying. It's fair to look at here to explain how about what he did not exactly as a what it would mean for our economy is Pete's sake the vice president for policy. And communications with the National Taxpayers Union. So I just I got back from. Italy about six months ago and that taxing I was dealing with what is this thing so what does it. It's basically attacks on the value added at."

" Each stage of production of the good -- surface that means for example when your manufacturing a car. You put that door on the automobile that's value added when you put the poll's Korean acts value added."

" When you put the tires on its value added. A simplified explanation but. Each stage of that production would have its own tax placed on -- very -- one at bat."

" Most of the fats in Europe started out at ten or 15%. When they were introduced about forty years ago. Now they're closer to one year when he 5%. Nutrients later rate like that the United States if we were to -- that. It would raise anywhere from three to 500 billion dollars a year a huge revenue source which is why a lot of politicians what."

" I was doing my research this morning I stole this from Wikipedia from the -- right now so. If if the vat -- let's say -- 10% and orange juice maker. Would pay 10% of let's say a five dollar a gallon price of Orange juice. Minus the taxes paid by the orange juice bar correct. Yes OK yes and see this is the complexity do you think about Atlantic giants."

" very confusing because. Not only are you talking about taxes added -- stage the end producer the end deliver the goods. The adults those taxes from his or her own bottom line. You begin to get a flavor that this is a very complex tax to administer which is why most of the countries that have adopted it had such high rates it doesn't make sense to have a five or 10% -- Considering all the administrative costs for both the government. And the producers and businesses and ball so. It's virtually guaranteed that if of that has introduced in the United States the minimum rate. Will be 15%. And in fact that's what the European Union requires. Of its member country."

" OK so everybody watching this right now that the average taxpayer the person not the company's you know these corporations but the people that are watching right now are going oh local. What does this mean for me what does this mean my pocketbook so what tell them what it means."

" Be afraid be very afraid it means you could easily be paying ten or 15%. More for the basic goods and services you purchase. Again we're not just talking about things you buy at the grocery store or the appliance store were also talking about. Restaurants were talking about pizza delivery joints anything. Could be subject to the value added tax. And of course Democrats as well as some liberal supporters of the value added tax outside the party are saying well. It's not going to be regressive on consumers because will just create a bunch of exemptions well again that's going to add more complexity of the system. And in fact. It's -- income taxes to go up in Europe at the same time because once those exemptions are in place the revenues start to drop whenever we have a lot of people watching us right now saying but I did I went to Europe and it's there Salvatore in for that why can't work for us. A number of reasons for one Europe's economic growth and unemployment as far worse -- Then it is in the United States one of the reasons is because. In the absence of a bat there is less consumption of the economy by government in the United States than there is over there Europe does not. -- Economically or for tax -- simply because that that exists it it would hurt us pizza thank you very much for enlightening us on this will follow my pleasure."