We Can’t Afford the VAT
I was pleased to hear recent comments from House Ways and Means Chairman Sander Levin (D-MI) that considering a VAT (value-added tax) was “not on the agenda” for the 2011 revision of the tax code.
The VAT is a form of national sales tax applied at every stage of production. White House advisors have suggested that a VAT should be considered in order to close the deficit. In Europe the typical value-added tax is as high as over twenty percent. The Senate also recently passed a resolution opposing a VAT.
The White House continues to say that it may be time to consider this European-style tax. I am very concerned that higher taxes will be implemented to pay for the healthcare plan and other spending increases passed this year. Western New York cannot afford the job crushing cost of a VAT. Taxes paid by businesses add to the cost of producing or selling a product or service – which hurts consuming families and workers.
Job creation must be encouraged through incentives and benefits for employers, as well as leveling the playing field for American businesses. New tax schemes such as the value-added tax are job killers. We do not need to follow Europe’s example on taxes and spending.
The 29th Congressional District continues to be without representation and without any voice in the discussion on issues such as revising the tax code until the Democrat Party leadership allows our 660,000 voters to have a special election to fill our vacant seat.
Perhaps someday the idea of democracy will be respected and we’ll have an election so someone can represent this district on matters such as rewriting the tax code.