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ATR’s @MDuppler discusses the ramifications of the developing IRS scandal on @VarneyCo: http://t.co/ZvMvMW9fRE
May 14, 2013 03:01 PM
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In new @DailyCaller op-ed, @GroverNorquist urges Congress to question IRS agents involved in this scandal: http://t.co/M0gV2GpQ9G
May 14, 2013 02:30 PM
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Gov. Bob McDonnell Signs Largest Tax Hike in Virginia History into Law: http://t.co/iENksi7uQi
May 14, 2013 02:01 PM
taxreformer -
IRS tax return preparation invites a conflict of interest: http://t.co/oKvpIofu7Y
May 14, 2013 01:30 PM
taxreformer -
These destructive #Obamacare tax hikes will soon be implemented: http://t.co/opFkyf1guJ
May 14, 2013 01:01 PM
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"Saying the Marketplace Fairness Act is fair is like saying the Affordable Care Act makes health care affordable" -@MarshaBlackburn
May 14, 2013 12:30 PM
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"I can't believe #Obamacare led to higher health care costs," said no economist ever: http://t.co/J6dfnKqFYZ
May 14, 2013 12:01 PM
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#Obamacare's 10% tanning tax hits salon owners and customers, most of which are women: http://t.co/dJuaGAT9LE
May 14, 2013 11:01 AM
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Groups who advocated for the IRS to prepare tax returns sure look foolish these days: http://t.co/oKvpIofu7Y
May 13, 2013 06:30 PM
taxreformer -
"We don't need the federal government mandating additional taxes..." -@MarshaBlackburn on MFA: http://t.co/lAuLJtr5t3 #NoNetTax
May 13, 2013 06:00 PM
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VAT Taxes and Shareholders
This post originally appeared on AmericanShareholders.org
***
There's been a buzz going around this week that some Democrats on the Hill and even in the Obama White House are looking at a value-added tax (VAT) to pay for government-run health insurance.
You can read more about this at ATR. They also cover how this trial balloon was floated before by Bill Clinton back in 1993, and how VAT rates have risen over time with our major trading partners.
What's been left out of most of the analysis has been the impact on shareholders. At first glance, there wouldn't seem to be one. VATs are embedded in the price of a good, and ultimately paid for by the retail consumer.
However, a VAT is merely a very efficient consumption tax on corporate products. As such, the tax wedge should have a similar impact to that of the corporate income tax (that CBO has said about a third of which is paid for in the form of lower returns to capital).
A VAT will raise the price of goods, and thereby hurt sales. It's a safe bet that about 30% of any new VAT tax will be paid for in the form of lower share prices and reduced dividends. That hurts everybody who has a 401(k) or an IRA, not just direct owners of companies.
Posted by Ryan Ellis 
on Friday, May 29, 2009 1:08 PM EDT
on Friday, May 29, 2009 1:08 PM EDTTo follow Ryan Ellis's RSS feed click here. To follow them on Twitter, their handle is @ryanlellis
