"No new taxes" for GOP -- except a national sales tax
Republicans swear they won't raise taxes -- but Rand Paul and Paul Ryan want to tax everything you buy
BY JOE CONASON
Can you guess which tax is bad, bad, bad when suggested by Democrats but perfectly acceptable when proposed by Republicans? Listening to Rand Paul and Paul Ryan, among others, the answer is a national sales tax or value-added tax, known in Europe as a VAT. While Republicans argue ferociously to preserve the Bush tax cuts for America’s wealthiest families, the notion of a new federal tax on goods and services - which would disproportionately penalize working consumers -- is becoming fashionable among their party’s most prominent figures.
The Kentucky Republican Senate candidate made headlines yesterday when he proposed a national sales tax to replace the income tax, but Paul is scarcely alone in preferring a tax that falls most heavily on the middle class, workers and the poor. Rep. Ryan’s budget "roadmap," released earlier this year to much fanfare in the conservative and mainstream media, relies on an 8.5 percent "business consumption" tax -- yet another name for what Europeans call a VAT. From Arizona to Maine, Republican candidates seem increasingly eager to impose a national sales tax -- and although they usually say this new tax would “replace” the income tax and abolish the IRS, such fantasies aren't contemplated by Ryan, the ranking Republican on the House Budget Committee.
Regressive taxation is a perennial enthusiasm among conservatives. But whatever happened to "no new taxes" and the Taxpayer Protection Pledge popularized by Grover Norquist? Ryan and Paul are both among the signatories of the Norquist pledge, a document that forbids any “changes in tax deductions or credits that increase the tax burden on Americans,” as a national sales tax or VAT would inevitably do -- especially if it doesn’t replace income and wage taxes. Evidently the Wisconsin Republican believed he could get away with sneaking a VAT into his budget plan (which is one of several reasons that the Ryan roadmap would increase the tax burden on most American families while lavishing new tax breaks on the wealthiest few).
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http://www.salon.com/news/politics/republican_party/index.html?story=/opinion/conason/2010/10/13/salestax