A year ago, I did a post on the Value Added Tax.  You can see it here.  Today, I know that my biggest mistake in that post is that I thought we would see a VAT last summer, or at least a serious attempt at it.  Now I am convinced that Congress will try its best to pass a VAT shortly after the November election.

The following was sent to me by a friend.  It tells the story better than I can.  Please note that as pointed out by PMV in the second comment to this post, the totals are exaggerated by about half the amount of the VAT.

Current European tax rates:

United Kingdom

Income Tax:  50% VAT:  17.5%   TOTAL:  67.5%
Germany Income Tax:  45% VAT:  19%      TOTAL:  64%
France Income Tax:  40% VAT:  19.6%   TOTAL:  59.6%
Greece Income Tax:  40% VAT:  25%      TOTAL:  65%
Spain Income Tax:  45% VAT:  16%      TOTAL:  61%
Portugal Income Tax:  42% VAT:  20%      TOTAL:  62%
Sweden Income Tax:  55% VAT:  25%      TOTAL:  80%
Norway Income Tax:  54.3% VAT:  25%      TOTAL:  79.3%
Netherlands Income Tax:  52% VAT:  19%      TOTAL:  71%
Denmark Income Tax:  58% VAT:  25%      TOTAL:  83%
Finland Income Tax:  53% VAT:  22%      TOTAL:  75%

If you’ve started to wonder what the real costs of “socialism” are going to be, once the full program in these United States hits your wallet, take a look at the table.  As you digest these mind-boggling figures, keep in mind that in spite of these astronomical tax rates, these countries are still not financing their social welfare programs exclusively from tax revenues!  They are deeply mired in public debt of gargantuan proportions.   Greece has reached the point where its debt is so huge it is in imminent danger of defaulting.  That is the reason the European economic community has intervened to bail them out.  If you’re following the financial news, you know Spain and Portugal are right behind Greece .

The United States is now heading right down the same path.  The “VAT” tax in the table is the national sales tax that Europeans pay.  Stay tuned because that is exactly what you can expect to see the administration proposing after the fall elections.  The initial percentage in the United States isn’t going to be anywhere near the outrageous numbers you now see in Europe .  Guess what, the current outrageous numbers in Europe didn’t start out as outrageous either.  They started out as miniscule—right around the 1% or 2% where they will start out in the United States .  Magically however, they ran up over the years to where they are now.  Expect the same thing here.

It’s time to rethink the ‘American Dream’ idea:  It is the notion that with hard work and perseverance, anybody can get ahead economically here.  Do you think that can ever happen with tax rates between 60% and 80%?  Think again.  With the government taking that percentage of your money, your life will be exactly like life in Europe .  You will never be able to buy a home.  You will never buy a car.  You will never send your children to college.  Let’s not shuffle the battle cry of the socialists under the rug either.  It’s always the same cry.  “Equalize” income.  “Spread the wealth” to the “poor” (whoever they are).  “Level” the economic playing field.  Accomplish that and everything will be rosy.

It’s time to take a really hard look at reality.   Greece is a perfect example.  Despite the “socialism” system that has ruled this country for decades, with a 65% tax rate, they are drowning in public debt, would have defaulted without hundreds of billions in bailout money, and still. . .20% of their population lives in “poverty.”  What has all that “socialism” money bought, besides ultimate power for the politicians running the show?  Do you think these people are “free”?  They’re not.  They are slaves to their economic “system.”

We are at a tipping point in America .  We all know it.  Turn this around right now or your grandchildren will be massing in the streets of this once-great country, just as the people of Greece now are.  Economic slavery is slavery, just the same.  Carefully and deeply consider what it takes to throw off the yoke of slavery, once it takes hold and settles over your neck.


My only beef with the above is that it describes the “real costs of socialism” in dollars.  In my view, the real costs of socialism are in the dulling of initiative, the entitlement attitude, the increase in government control of our lives, and the substitution of the state for the family.  I like the following quote from Sir Winston Churchill:

“Socialism is a philosophy of failure, the creed of ignorance, and the gospel of envy.”

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