Public finance

Who do you think is going to pay for the new National Health Care Bill?  You! That is right, everyone, no matter who you are, you will feel the impact via a new taxing scheme.  Insiders in the Obama administration, their names kept secret to protect the guilty, are now laying the foundation for a Value Added Tax, better know as VAT. 

A VAT is a tax on the transfer of goods and services that ultimately is borne by the consumer. Highly visible, it would increase the cost of just about everything, from a carton of eggs to a visit with a lawyer. It is also hugely regressive, falling heavily on the poor. But VAT advocates say those negatives could be offset by using the proceeds to pay for health care for every American -- a tangible benefit that would be highly valuable to low-income families.

Do not be fooled by the Progressive dictum that VAT is necessary. What is necessary is the cut back of wasteful government spending and a dismantling of the bureaucracy and elimination of frivolous mandates. A 25% reduction in the Federal workforce is the prudent action to take. But no, the socialists will not throw our their chief supporters,  the Federalized Union workforce. They are untouchable.

And who do you think the  White House Budget Director Peter Orszag hired, but none other than a prominent VAT advocate to advise him on health care: Ezekiel Emanuel, brother of White House chief of staff Rahm Emanuel and author of the 2008 book "Health Care, Guaranteed."

Patriots, get active, call your Senators now. Tell them that you are against National Health Care and the VAT tax is DOA. Make the call before it is too late.

An introduction to the tax follows:

With a 10% VAT:

• The manufacturer pays $1.10 ($1 + $1x10%) for the raw materials, and the seller of the raw materials pays the government $0.10.
• The manufacturer charges the retailer $1.32 ($1.20 + $1.20x10%) and pays the government $0.02 ($0.12 minus $0.10), leaving the same profit of $0.20.
• The retailer charges the consumer $1.65 ($1.50 + $1.50x10%) and pays the government $0.03 ($0.15 minus $0.12), leaving the profit of $0.30 (1.65-1.32-.03).

Albert Einstein would love to be the accountant trying to figure this one out. The added paperwork alone would stifle the economy to no end as it transfers more and more money to the do good for all government. So just think of VAT like a baseball BAT, the government has a good eye and when it swings the VAT solid contact is made. You will feel the hit to your wallet and to your head all at the same time.