A Pamphlet from Don Stuart, Preserve Our Nation, LLC
Pamphlet #22 - 5/27/2009

Pass this pamphlet to your friends!

Democrat National Sales Tax - VAT?

The Democrats are proposing to add a "Value Added Tax" (VAT) to all sales on products and services. In other words a National Sales Tax of 10% to 25% on everything you purchase. This is in addition to the Income Tax, not a substitute for the Income Tax.

VAT versus
National Sales Tax
  • VAT is a tax at each stage of production as a product moves from one manufacturer to another. A final tax is imposed at the final retail sale to the customer. The tax is calculated by the amount of value added to the product at each stage. In some cases, if the product is never sold to the final customer, the government still will have received some tax money from previous stages.
  • National Sales Tax is a sales tax on the final sale to the customer at the retail level. Thus if the product is never sold, the government receives no tax money.

The Democrats are confusing VAT and a National Sales Tax.

The Fairtax is a sales tax on products and services but is "instead of an Income Tax" not "in addition to the Income Tax"! The Fairtax organization has calculated that it would require only a 23% tax on products and services to replace the current Income Tax system.

The Democrats are spending trillions of dollars and have no way to generate that amount of revenue from Income Taxes alone. Thus, new taxes are required. Lots of new taxes! They are proposing Income Taxes plus a National Sales Tax (VAT)! And don't forget the Democrats have already raised sales taxes on many products.

Click here to link to my example of the VAT and Fairtax and how it works.

In simple terms, the Democrats propose not only that the manufacturer add in FICA and profit taxes on the product's final price, but also add the National Sales Tax (VAT) on top of those taxes. Thus when you purchase a product or service you will be paying double taxes.

The Fairtax proposes reducing the product's FICA and profit taxes by eliminating the Income Tax. This will lower the product's retail price before the Fairtax is added. Another chance to review the Fairtax

Preserve Our Nation proposes Repeal of the Sixteenth Amendment (Labor Tax known as the Income Tax) and switching to either a VAT or the Fairtax. Our preferred choice is Fairtax.

Pass this pamphlet to your friends to stop Double Taxation by the Democrats.

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