Topic: Value Added Tax

Andrew Yang's "Freedom Dividend" proposal of $1,000 per month for every adult is scrutinized for its cost, estimated at $150 billion monthly. Yang intends to fund the program through a 10% Value Added Tax (VAT) and claims automation and Amazon are responsible for closing 30% of American malls.

France implemented new tax hikes on January 1st, 2014, including an increase in the Value Added Tax (VAT) from 19.6% to 20%. The intermediate rate for restaurants and services rose from 7% to 10%, forcing business owners to decide between raising prices or absorbing the costs. The hosts discuss the broader implications of VAT across the Eurozone and its impact on consumers.

A donor from Ohio describes how their community's lake was leased for fracking without landowner consent, leading them to move to Maine. This transitions into a discussion about Copenhagen, Denmark, where the hosts discuss high taxes and the design of clothing with large pockets for carrying media.

Italy implemented new austerity measures including a Value Added Tax (VAT) increase from 20% to 21%. Other measures include a freeze on public sector salaries until 2014, raising the retirement age for women to 65, and new taxes on the energy sector. The hosts debate the mathematical impact of the 1% tax increase on consumer costs.

The EU is moving toward "fiscal harmonization," which may include standardized value-added taxes determined by Brussels. Reference is made to Protocol 14 of the Lisbon Treaty regarding the election of a president for the Eurogroup working group. Critics argue that the term "surveillance" in EU documents signals an intrusive level of financial oversight over member states.

Ireland is introducing new property taxes as part of its agreement with the IMF and European Union. The hosts argue that Americans are actually the most heavily taxed people in the world when accounting for sales, excise, and hidden corporate taxes. They explain how a 35% corporate tax is ultimately passed on to the consumer, resulting in "double-dipping" by the government.

The potential introduction of a Value Added Tax (VAT) in the United States is compared to existing systems in Europe, where rates reach 19% in the Netherlands and 21% in Belgium. Unlike a simple sales tax, VAT is applied at every stage of production and distribution. While European taxes are high, the cost of living in the Netherlands is perceived by some as more manageable than in high-tax states like California.

Speaker Nancy Pelosi suggested on the Charlie Rose show that a Value-Added Tax (VAT) might be considered for the United States. The hosts complain about the high tax burden in California, which they estimate at 65% to 70% when combining income, sales, and fuel taxes. They criticize San Francisco's spending on a new bus terminal.

Britain's Court of Appeal ruled that Pringles contain enough potato to be legally classified as potato chips, making them subject to Value-Added Tax (VAT). Manufacturer Procter & Gamble had argued the product was not a potato chip in an attempt to claim a tax exemption. The hosts find it ironic that a company would fight to prove its product lacks the primary ingredient it is known for.

CNBC host Jim Cramer has predicted an economic boom following the inauguration of Barack Obama, though skeptics believe this may lead to a more severe eventual bust. Rumors suggest the United States may implement a value-added tax (VAT) to pay for the $8.4 trillion bailout, similar to systems in the UK and EU. Meanwhile, credit shortages are beginning to impact essential sectors like agriculture and food supply.

The European Central Bank raised interest rates to 4.25% as several European nations announce 1% increases to Value-Added Tax (VAT). Housing markets in Europe are experiencing a 50% decline in activity. Discussion turns to rumors that Iran intends to flood the market with cheap oil traded in Euros via the Kish Island oil bourse, potentially provoking military intervention from Israel and the United States.

Mike Huckabee's proposal to replace the income tax with a consumption tax is debated, with references to the Value Added Tax (VAT) systems used in Europe. While a consumption tax might capture revenue from the "gray market" and drug dealers, it is criticized for potentially creating a large black market for services. Personal anecdotes regarding the difficulty of managing payroll paperwork for small businesses are used to illustrate why people often prefer "under the table" cash payments.