Obama leaves VAT on the table

Obama was asked today about the Value Added Tax (VAT) and he did not categorically deny it. 

Associated Press: ... In the CNBC interview, Obama said he was waiting for recommendations from a bipartisan fiscal advisory commission on ways to tackle the deficit and other problems.

When asked if he could see a potential VAT in this nation, the president said: "I know that there's been a lot of talk around town lately about the value-added tax. That is something that has worked for some countries. It's something that would be novel for the United States."

"And before, you know, I start saying 'this makes sense or that makes sense,' I want to get a better picture of what our options are," Obama said.

He said his first priority "is to figure out how can we reduce wasteful spending so that, you know, we have a baseline of the core services that we need and the government should provide. And then we decide how do we pay for that." 

Anyone with half a brain can tell by now that VAT is going to be the only solution for paying down the debt. If the Democrats are unwilling to cut entitlements, then there is no other way to generate the kinds of revenue needed to pay for all the spending that has been done.  Even if you were to tax the living hell out of America’s top earners, you still would not generate enough revenue to payoff or service our debt.

The VAT will mean higher prices for everything, for everone …forever. So for all those numbskulls that actually thanked Obama for their “tax cuts”, get ready VAT will steal it all away and then some.

Via: Memeorandum

Via: Associated Press

Something wicked this way comes: The VAT tax

Something dark and evil is brewing over the horizon in Washington. It comes from the bowels of European socialist model soon to be transplanted in the heart of America by our socialism loving Congress. It’s the VAT tax!

The VAT tax or Value Added Tax is a tax that is levied on goods or services during each stage of production e.g. a raw materials supplier charges VAT to the manufacturer. The manufacturer then charges VAT to the wholesaler and finally the wholesaler charges VAT to the retailer.

The insidiousness of the VAT is that you the consumer will not see or pay the tax directly. Instead, the VAT tax is charged to you indirectly in the form of higher prices.

Governments love this tax because it provides a mother load of cash by repeatedly taxing a single product. The example I gave above is simple, but think about how much money a government would make when VAT is applied to complex products like electronics or cars. You can just imagine how much higher the prices of those items will be.

While greedy government spenders love the VAT tax, manufactures do not. The VAT tax makes producing products very expensive. If you thought manufacturing jobs are fleeing the United States now, just wait until VAT gets here.

Already trial balloons for VAT are being floated around Washington. White House economic adviser Paul Volcker raised the issue the other day. In addition the CBO has been receiving questions from Congress about a VAT tax.

I find the whole VAT idea to be pure evil. First, during this time of economic hardship the last thing any of us needs are higher prices on our goods and services. This tax would not be necessary if Washington had listen to our objections over bailouts, stimulus and the take over of health care. Now that they have run up the tab against our wishes, they wish to impose higher prices on our lives to pay for it. Outrageous!

No doubt the Democrats will try to sell the VAT as a necessity to pay down the debt and they will try to sell us a bogus story that consumers will not have to pay it. They may even try to say it will only be temporary. All of these talking points will be flat out lies.

Gird your loins folks, VAT is coming.

Via: Memeorandum

Via: The New York Post

Via: The Weekly Standard