Good News! Here comes the VAT

Im all for a vat sans personal income tax.....but both together? GNP will exceed max velocity south.
Even San Francisco will end up republican.

It's like Toyota charging you extra for an emergency brake.

"Even San Francisco will end up republican."

Yeah, unintended consequences?

isn't it really a step toward a flat tax?

"Interestingly, though, many GOP economists favored a VAT in the 1980s, and it was Margaret Thatcher who introduced one to the U.K"

I expect that first taxes on couples earning over $250 K will be steadily increased.

However, that will not be enough to address the coming surge in Boomer retirement entitlements - Social Security and Medicare.

Thereafter, I would expect a VAT. I can't think of many developed countries that don't have both income taxes and VATs. Just another name from a sales tax - but one that is built into prices you pay. As it is phased in, that would mean rising prices which would seem like inflation - but would really just be taxes.

This is a good year to consider realizing capital gains taxes and perhaps Roth conversions.

somewherelse
Yes a VAT tax INSTEAD of personal income tax, not both.

Rising personal income taxes may be a reason to consider Roth conversion, but a VAT would actually offset that somewhat. If more of our tax burden will be shifted to VAT versus personal income taxes, it's probably better to keep money in traditional 401(k)s and IRAs.

Me, I hedge my bets and try to keep a relatively equal amount in both, accounting for the current tax burden I would face on my traditional 401(k) or IRA. I'm lucky in that my employer does offer a Roth 401(k); not too many do.

btw, the VAT would end the internet sales tax issue, no?