Update: Icarus has added some info on this in the comments, saying, “I just spoke to Westmoreland’s office. The Hill article doesn’t have a bill number. Lynn does not support a Value added tax, and will have more to say on the subject shortly.”
The bill in question is HR 2927, or the “Border Tax Equity Act of 2009.” Section 4491 of the bill, titled “Imposition of Tax,” states:
`(a) General Rule- There is hereby imposed a tax on imports of goods and services from any foreign country that employs an indirect tax system and grants rebates of indirect taxes paid on goods or services exported from that country.
`(b) Amount of Tax- The amount of the tax imposed by subsection (a) on an imported good or service shall be an amount equal to the excess of–
`(1) the indirect taxes that are rebated or not paid on the good or service upon its export, over
`(2) any indirect taxes imposed on the good or service at the border of the United States.
HR 2927’s cosponsors do include Westmoreland.
As income taxes creep towards their highest rates in decades, you may soon be required to pay more tax in the checkout line, as well.
The Hill is reporting that Lynn “Three Commandments” Westmoreland (R-GA), my former Congressman, has jumped on board a proposal by New Jersey Democrat Bill Pascrell that would impose a Value-Added Tax on products imported from countries that also have a VAT — a list which currently includes Mexico, India, and the entire European Union.
Rep. Walter Jones (R-
SNC), another co-sponsor of the VAT bill, has called on people to “let experts to analyze various tax reform plans before judging them” — including the VAT, which President Barack Obama (D-IL) and one of his chief economic advisers, Paul Volcker, have spoken favorably of as a way to decrease the administration and Democrat Congress’s record deficits.
Just two weeks ago Georgia’s two Senators, Johnny Isakson and Saxby Chambliss, voted in favor of a Sense of the Senate resolution opposing the VAT, which called it “a massive tax increase that will cripple families on fixed income and only further push back America’s economic recovery.”