On May 27th The Obama Administration instructed Rahm Emanual's Brother Ezekiel Emanual to leak a story to the Washington Post www.washingtonpost.com. The story was about the need for a Value Added Tax. For those who may not be informed as to what this is, and how it works I will sum it up very quickly. We will use a wooden office desk as our example. When the Sawmill finishes the wood for the desk and sells it to the furniture manufacturing company the Sawmill will be taxed at 10%. The furniture manufactuerer will in turn build the desk and sell it to a furniture wholesaler and the furniture manufacturer will be taxed at 10%. After the Desk is sold to the retailer their is now an embedded tax of 20% that will be passed on to the consumer. They can manipulate this tax in secret for the people they want to reward the same way they do with the income tax. They can then add additional layers by adding the wholesaler or the timber company to the equasion and raise the tax to 30% or 40% and write it into a very confusing code of regulations the same way they do with the income tax. They can reward the people with the more powerful lobbies by exempting them from some or all of the taxes involved.
Here is the purpose of a VAT rather than a sales tax that occurs at the point of sale, you don't get to see yourself paying the Value Added Tax. Government will employ every possible deceit in order to deceive the people into allowing them to hide the taxes that they impose upon us, and they rely on our passive acceptance in doing so.
Virtually every Socialist country has adopted the Value Added Tax. If we allow this to happen in leiu of the FAIRTAX then we are no longer a democratic republic, we become just another Democratic Socialist State like France.
If you have any doubt that the Obama Administration is trying to drive us to a fully socialist state, this should remove all doubt.
Curtis R. Pack