“Free” Government Services = Value-Added Tax

With the coming presidential primary, I watch with great interest as each potential candidate seemingly takes it as a challenge to one-up what a previous candidate promised.  The ante is now “free” healthcare, college, and economic security for those unable or unwilling to work.  (Emphasis added.)  I am aware that the two authors of the so called Green New Deal are not running for president, at least not yet, but several announced candidates have indicated support for this legislation.

https://www.cnbc.com/2019/02/07/ocasio-cortezs-green-new-deal-offers-economic-security-for-those-unwilling-to-work.html

Apparently all of the politicians supporting more socialistic programs are not paying attention to Venezuela.  Or maybe they are.  The politicians and their cronies did just fine.  The common people are the ones suffering and trying to flee the country.  They were promised all sorts of “free” things too.

As Margaret Thatcher said, “The trouble with socialism is you eventually run out of other people’s money.”  Talking about “free” goods and services makes for great sound bites and bumper stickers.  The reality is that a 70% income tax on the “tippy top” will not pay for all of the promised entitlements.  Every country with socialized medicine has a VAT tax (value-added tax).  There is no more regressive tax system than a VAT.  Unfortunately, politicians will not propose a federal VAT until they get the population addicted to “free” stuff.  Unless something changes, that is the path the US is headed down.

 

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