Harmonizing the Tax System


A couple of years ago, there was a big promotion by the 'Free Market, Free Trade' crowd to change the tax structure from an income tax to a national sales tax on all purchases - goods and services.  The idea was packaged under the name 'Fair Tax' and it was presented to the House of Representatives Committee that handles such things.

The big selling point for the Fair Tax was that it would eliminate the Internal Revenue Service.  That might sound attractive but the truth is that it would just change the mission of the IRS and it would expand the size of their department by many times.  Rather than auditing tax returns, they would be patrolling neighborhoods to see if you pay the sales tax that is due to the government for getting your lawn mowed.  Of course they could contract out that function to a private company to put surveillance cameras in your neighborhood instead so that a monitor could watch 24/7 - under the 'Leave No Transaction Behind' program.

Everything about the 'Fair Tax' plan was misrepresented or a flat out lie - including the perfectly Orwellian name, "Fair Tax'.  In the Congressional hearing, it came out that rather than 23% it was actually 30%.  In the study to determine revenue neutrality with the current tax system, they cheated in the calculation to come out even - but the dollar value of the error - once fixed, would increase the tax to 50% rather than the 30%.   So in exchange for completing a tax return once a year, a person would end up paying 50 cents on the dollar - for every dollar spent.  It was a fabulous deal for Bill Gates, Warren Buffet and the slim minority at the top of the income scale.  A terrible idea for most people in this country - especially those who live on a fixed income, low wage earners, and young families.

The 'Fair Tax' plan was presented by Republicans to a committee chaired by a Democrat.  The Democrats didn't like the plan at all - or so it seemed.   The Republican legislation for the Fair Tax would have had the entire country switch over to a national sales tax at the same time.  That would have been chaos and was completely unrealistic since applying sales tax to services would be a completely new tax so a new infrastructure would have to be implemented all the way down the line - including educating the lawn guy to collect the tax and fill out the forms. 

At the time, I thought that Rep. John Linder, sponsor of the Fair Tax, was just a psychopath who had eluded the white coats by hiding in the capitol and blending in.   But sometime later, when I stumbled on the fact that Canada had a Goods and Services Tax, the dots connected revealing that the Fair Tax plan was a plan to harmonize the U.S. tax system with Canada and that probably the Goods and Services Tax was the chosen method for the global tax for the international system of "governance".  It makes sense from the standpoint that the people who are pursuing "global governance" represent corporate interests and their mission is to break nations.  Whoever collects the tax revenues controls the government.  With the Goods and Services tax, that power belongs to the corporations who sell the most. It's a perfect way to disempower government of the people while empowering government by corporations and their fascist system of global control.  

Goods and Services Tax

The Goods and Services Tax was implemented in Canada in 1991.   The following is a list countries that have converted to a Goods and Services Tax.  It's important to note that it's the infrastructure of the tax that is important - not the rates and not the exclusions.  Once the infrastructure for collection is in place, the rates are easily adjusted.

New Zealand
India  (proposed for 2010)
Hong Kong (proposed)
European Union (VAT)


In the above countries - except for the European Union, the Goods and Services Tax was introduced in an honest way - naming it for what it is.  In the United States, the world leader in deceptive marketing, the Goods and Services Tax was named the 'Fair Tax' when the republicans sponsored it.  Now that the democrats are in power, implementation is being phased in by sector beginning with the energy tax included in the Cap and Trade legislation.  The Cap and Trade legislation called for carbon credits which in reality are nothing more than ration coupons and revenue stamps tradable in the market.  The estimates I saw had the new tax on all types of energy pegged at around 30% to be passed through to consumers.

Yesterday, an article in the New York Times introduced the idea being proposed by Blue Dog Democrats of a consumption tax on health care - to pay for Obama's nationalized health "reform" that really isn't Obama's plan at all.  It's perfect.  It adds up to a full package of bullsh*t since the consumption tax on health care isn't really the idea of the Blue Dogs.  It's just the health care sector of the Fair Tax which is actually the harmonized, global Goods and Services Tax.  Don't you love it?   You've got to read the New York Times article.... the author includes lots of political intrigue to make it exciting for the mullets who think there is really a difference between the two parties.  It's really quite funny when you know the history and the real objective. 


Health Care Reform and the Unpopular T-Word
Published: July 28, 2009

Health costs, on the other hand, are growing much more quickly than the economy. Over the last decade, the economy has expanded by about 20 percent, and health spending has ballooned 50 percent. The gap isnít about to start closing, either.

So no matter what Congress has done to pay for its plans, it canít keep up.

The numbers show there is only one sure way out of the problem, and, after months of roundabout discussion, that solution has re-emerged: Itís a tax on health care.

If Congress taxes health care, the revenue has a chance of rising with health spending. A health tax will also create an incentive for workers and businesses to slow the growth of health spending ó thus reducing the amount of taxes needed to pay the nationís health bill.


To deal with this political reality, the Senate Finance Committee has become intrigued by a version of a health care tax, being pushed by the Massachusetts Democrat John Kerry, that comes dressed up with a whole lot of lipstick. The tax doesnít fall directly on workers. It doesnít even fall on employers. It falls on everyoneís favorite villain: health insurance companies.

In keeping with tradition, the masters of deceptive marketing will propose taxing health insurers.  The joke obviously is that they will make everybody buy insurance and the insurance companies will pass through the tax to the insured. 

So now we know why the Blue Dogs got so much attention in the past couple of weeks.  The script was for them to be the hero-anti-heroes by opposing the Democratic House leadership with the game plan set for them to run the ball up the middle by proposing a solution that will be acceptable to both sides of the aisle - sales tax on mandatory health insurance. 


Vicky Davis
July 29, 2009