Why does Pelosi want a hidden VAT tax?

http://mises.org/daily/4296 (this article linked published in human events in 1970s , added congressional record)

in 1970s, richard "we're keynesians now" nixon proposing same thing. according wikipedia ( http://en.wikipedia.org/wiki/vat#united_... ), nancy pelosi proposed vat tax last year.

fortunately taxpayers, timothy geithner claiming obama doesn't support vat. however, don't think trusts of treasury secretary has say.

vat special kind of sales tax. instead of levying on purchases, instead of businesses involved in production of particular have pay vat tax. means 5% vat tax on food paid farmer grew food, manufacturer, wholesaler (middleman) sold store, , store. cause massive increase in prices, blamed on "greedy" businessmen rather government, opportunistically denounce "price-gouging" businessmen.

vat stealth sales tax cause consumers blame business rather government higher prices result.

in interesting footnote, 1 state adopted vat (michigan) during 1970s repealed voter initiative, became effective on january 1st of 2009. don't think in other states wants follow in footsteps of michigan.

of course, advocacy sales tax ("fairtax") many republicans hasn't helped. "fairtax" sales tax charged solely retailer, consumer won't notice rate of taxation. might more problematic withholding system used irs (invented supposed "free-market" economist milton friedman), reason why many people "refunds" irs every year (this "temporary" wartime measure wwii, reason why important cause of limited government stay out of foreign wars).

http://mises.org/daily/4296 (this article linked published in human events in 1970s , added congressional record) in 1970s, richard "we're keynesians now" nixon proposing same thing. according wikipedia (...

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