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  • Speaker Pelosi Hints at Massive Tax Hike

    Speaker Nancy Pelosi joined a growing liberal chorus calling for a massive tax hike through the implementation of a value added tax (VAT). A VAT is similar to a national sales tax. Businesses would pay it at each stage of the production process and consumers at the cash register. European countries have had VATs for years.

    As we pointed out earlier this year, Congress should not pass a VAT to pay for a government takeover of the health care system or expand the size of government. If it does so, it will be a massive tax hike:

    Just a 1 percent VAT on all goods and services in the economy would raise $63 billion for Congress to spend each year. Some suggest the VAT rate should be set as high as 20 percent. At that rate, a VAT that covers all goods and services in the economy – including food, clothing, housing, and health care – would collect an additional $1,260 billion a year and cost every U.S. household $10,680 annually.

    Even if Congress passes a VAT that has a rate of just a few percentage points, it would likely lead to higher rates in the future. Evidence from other countries that already have VATs show once it is on the books the rate tends to rise over time.

    The American people would be better off if Congress stopped spending and instead reformed existing entitlements to make them more affordable and effective. Adding a new entitlement will only make the country’s fiscal situation worse and make painful tax hikes more likely. Unfortunately, that might have been the plan all along.

    Posted in Economics [slideshow_deploy]

    47 Responses to Speaker Pelosi Hints at Massive Tax Hike

    1. Chris, Tampa, Iraq says:

      Well looks like you liberals are getting everything you wanted/////////golf clap//////////

    2. denise,los angeles says:

      I really don't know how we would afford any additional taxes. We have cut corners and make sacrifices now. I am not being overly dramatic, this is scary.

    3. George in Mass says:

      This woman is mentally ill and should be committed.

    4. Bobbie Jay says:

      How ugly. To take the freedom to live away.

      Get rid of the VAT and the BAT!

    5. Evan Cowart, Boyd, T says:

      I am not surprised, the congress crowd sees us as their personal piggy bank. I wonder if they understand that the US Citizens are not really an unending stream of money to fund all their pet projects. The money is not infinite, it has a limit, it is called bankruptcy. CA is an excellent example.

    6. William, Illinois says:

      It's time for this insanity to stop. We the People MUST be able to hold our elected officials in the Federal government accountable WHENEVER they take away our liberties either by excessive taxation which limits our ability to provide for ourselves and our families, or when they enact laws that encroach on State Sovereignty. Here's a suggestion for a start: This is an open letter to our Governors and State Legislatures. http://openletter.avoiceofthepeople.com

    7. William, Illinois says:

      If we are not going to get rid of entitlement programs such as Social Security, Medicare and etc, then the States need to be given control of these and the flow of our tax dollars that fund these programs returned to the States. Then let the People make the hard decision as to "who, what, when, where, and why" since our elected officials are either unwilling to do so because it would take power from their hands, or their to afraid of public backlash. Well, let the Public decide about funding these programs by handing them off to the States, and let the People of each State make the decision. This would get the politicians off the hook, since they can just blame it on We the People. The were only doing the Will of the People! How about THAT for an out, DC? Willing to take us up on it? We're waiting. http://www.avoiceofthepeople.com

    8. David, St. Louis says:

      "Even if Congress passes a VAT that has a rate of just a few percentage points, it would likely lead to higher rates in the future."

      Reminds me of one Glenn Beck broadcast where he mentioned that when the income tax amendment was being proposed, come Congressmen objected on the grounds that, if passed, the income tax rate might someday exceed 4%! Wish I had a link to the quotation, but I just have Beck's word for now.

    9. Pingback: Higher Taxes for Everyone!

    10. Pingback: Morning Conservative Reading List - October 7, 2009 - AIP Blog - American Issues Project

    11. Dallasman, Columbus says:

      Canada does this and you can tell it at the cash registar. They have a government tax and a providencial tax applied to your purchases on check out.

      I do not see justification for the VAT in the US because the IRS will be able to take and sell your property if you don't buy the health care which should generate large amounts of money. A VAT is just not justifiable. This money could go to the governmentfor bailouts,war or to a politican for he or her relection adds.

    12. Steve J., Elkton, M says:

      By the time they take over health care, cap and tax hits and amnesty kicks in, they will all be voted out of office and we'll be in a great depression that will last 50 years. What? Me worry?

    13. Todd, Tallahassee, F says:

      I am tired of hearing all the Senators and President referring to this mess we are in as an "inherited problem". Last I checked all of them were in office for the last 5 years. IT IS TIME WE HOLD THEM ACCOUNTABLE! TERM LIMIT!

    14. Ann Jackson, Illinoi says:

      I am wondering what Mz. Pelosi and the congress would do if their alleged 'personal piggy bank' (us) suddenly refused to pay further taxes. Not that that would ever happen, because they have all the guns trained on 'the piggy bank.' Things have become totally outrageous – - in Illinois and the U.S. Congress and their "Dear Leader" (Big-O) should be so ashamed of themselves.

    15. Andy; Florida says:

      No wonder they want to gut the 2nd Amendment; long before Obama's term is over, a really p/o'd populace will march on Washington; our limits are being sorely tested; the breaking point will be a disaster for this Country; do they really want 50% unemployment, and/or 1/3 of all Americans bankrupt and homeless?

    16. Jim J, Fort Wayne, I says:

      How 'bout we try this on for size…Congress should personally live with and experience any legislation they try to push through. If they pass government controlled healthcare, then they canNOT be exempt. They HAVE to participate. They MUST be forced to pay into Social Security vs setting up their own golden parachutes. During this recession, they must NOT get pay raises while their constituants are losing their jobs or while many are taking pay cuts just to keep their jobs. Speaker Peyote (she's got to be smoking something!) and her cronies have completely lost touch with the citizens that put them in office. 2010 – they all gotta go!

    17. Brenda, Arizona says:

      California, please vote this woman out before she takes this country so far down that we will never recover. These people think that industry is evil and should be rid of. What they don't think about is when they are gone then who pays their salary because no one will have a job. They just continue to spend and and tax to no end. I despise these people to no end. I just heard the so called wealthy people have dropped in this country, even Buffet has lost billions recently. If you keep taking then there will be nothing left to given you morons in government.

    18. Don, Michigan says:

      Pelosi should be ran out the country. Send her to Europe. She will fit in just right. After all, they have everything there that she wants here. But then she could no longer try to ruin our country. She is just as dangerous and Obama.

    19. Susan , Detroit Mich says:

      Nancy Pelosi and her liberal pals are evil. Pure and simple. I wonder if VAT tax will apply to her and husband's vinard business in the republic and broke california.

      The left's plan is to have every man, women and child under government controll buy stealing all our money.

    20. Matt, San Diego says:

      This entire plan leads back to the topic of redistribution of wealth and the government's quest for complete control. It seems as though this administration is intent on eliminating any incentive for private sector profit and thus an industrious person's motivation to work hard and innovate. If this is true, what will ultimatly come of this nation's ability to move forward and acheive? Why would the "best and brightest" strive to produce at the high levels they have been for years? Altruism???

      Perhaps this administration intends create a disincentive to join the private sector and leave employment with the government as the only viable option.

    21. Freedomof Speech, Te says:

      The actions of the leftist administration and congress are indefensible. I hope all of you that got duped are really proud of yourself.

      Each passing month reveals more attacks on our financial, economic, and "freedom" systems. They are relentless and they are Marxist. There is no longer any doubt. The examples in their totality are too numerous to mention (heritage has them all in the archives).

      There is a movement to "re-invent" America and eventually the Constitution. HE told us as much and just over 1/2 of American voters either did not take him seriously or were too stupid to understand what a trained lawyer actually meant. Many never learned from Carter and Clinton. Many were too young to remember Carter and Clinton because they were not taught the important things in American government and history.

      How much is "eloquence" worth now?

      The ONLY hope is to regain 2010,the House of Representatives in 2010, where legislation begins. If the Republicans let us down – then it is all over. The ultra-left freak show controlling Congress KNOW THIS.

      These people will eventually find a way to TAX a placenta – BEFORE a child is born. They have no honor, no integrity, and no morals (big surprise).

      They are every bit as dangerous as our enemies abroad. For, they are destroying America from within. And, I now believe it is intentional. They will use race-baiting and any other disgusting tactic available.

      Most importantly, they will come after the freedom speakers. They already have the IRS as a weapon. Wait until you see what is included on 1040s in the future…

      You think 1984 cannot happen?

      Every American better start learning what a VAT Tax really is. This is simply another means to "re-distribute" wealth and spend more money. The 40 million households who currently pay no tax SURELY will not pay VAT Tax, either. Some loophole will be created; it always happens.

      This is typical CLASS WARFARE which is as insidious as the leftist race-baiting we have seen already. It is intended to pit Americans against one another AND squeeze even more dollars out of us.

      We need not wait for history to KNOW that this friscanian is the most dangerous Speaker this country has ever known.

      Compared to the trash the ultra-leftists dump on their opponents – my views are moderate.

    22. Space Bisbee,Az says:

      Pelosi helped sink California, now she wants to sink the U.S.A., if these Liberals want everyone to have Health Insurance, Why haven't they stepped up to the plate an start funding it themselves, out of their pockets? Because "Whats mine is mine, and yours is mine, so keep your hands of mine" attitude, is the spark that drives people like Pelosi. They are looking to spread the wealth, as long as it's someone else,s wealth, tax all who can't afford it, then try and pass it off as "Liberty". They ar America,s sad joke on it self. How they stay in office is anyone's guess, now it is up to us to put them where they belong, and not in Public Office!

    23. Linda Carlsbad, CA says:

      Vat tax, just like Europe, is this the change American wanted? I don't think so!

    24. Deirdre Kevorkian says:

      If VAT is added to corporate America, there will be a mass exodus of manufacturing to Mexico and Asia. Not only will we have fewer jobs available to Americans, we will have the added burden of the unemployed on government hand outs. Where does government think it will get its taxes if they run companies out of the country?

    25. Pingback: Bear Creek Ledger » VAT (Value Added Tax) is the direction the Dems want to go

    26. Pingback: VAT (Value Added Tax) is the direction the Dems want to go - toni100’s Diary - RedState

    27. Tim Az says:

      Just suppose that it really isn't about how much money government has to spend, But liberating every American of personal wealth no matter how small that wealth is. What then could they accomplish through fiscally destroying the American citizenry. MMM MMM MMM

    28. Ross writes from Bra says:

      It seems that our socialist Liberals and Progressives have no concept of capitalism, a representative republic, nor zero-sum-gain of taxes. To wit, the citizen swaps his time, talent, and labor for government-issued money to buy basic requirement of food, clothing, shelter, and possible creature comforts. The buyer creates employment for other citizens, this provides growth and wealth for all. Government taxes is to provide basic services to enhance the community. Then government decides it needs more taxes become it wants to provide more services; thus more taxes. With the increase of taxes, less buying power, business slows, people cutback causing others to loss their income. Taxes continue to increase because of less people to pay taxes but government continue to grow. Rationing starts, economy collapses, government blames business, unrest and anamosity escalates toward government. Thus started the French Revolution. Even the Russian revolution.

      We are not France nor are we Russia. Historically, we have nothing in common with either other than recepiants of their their exiles and dreamers. From these like groups, America became the greatest country in the world where our small governments did three missions, guard the shores, deliver the mail, and keep the hell out of our lives.

      In the Holy Bible, the good Lord only asked for 10% of a person's annual gains. VAT is a European governmental disease. We don't need it to further infect our already gravely ill society and struggling economy with more european socialist ideas and experiments that don't work. They've already severly damaged their culture, contaminated their society, dismantled their Christian mores, and wrecked their economy power in the world's market place.

    29. Maria, NC says:

      Any investigative reporters out there needing a project? Let's follow the money. Who are the new robber barons of our society soaking our most productive citizens, increasing unemployment, and destroying our economy for their own self gain? Redistributing this amount of money means that some people will get very, very wealthy with graft and profiteering off of this destructive process. Who is out there massively increasing net worth via redistribution projects at a time when many of us are being crushed?

    30. philip says:

      Why is the liberl demcratic party for the middle class,who else can they fool into being taxed with out repretation.

      The demacrats socialist agenda and congress who tax all facists of the united states to pad their own pockets, and put the people under a socialist goverment control. It appears that the Democrats do not want a free America! They want to control all facits of the peoples life. Yet, we as a Nation are still free. We want a free people we the people goverend by the people are threat to their power and total control of us. So just say no to Polsie and obama's health plan and all their taxation.

      KEEP AMERICA FREE

    31. Gail, Amarillo, Texa says:

      I should have seen that one coming. It was about the only tax not yet mentioned.

      So now, Americans will be punished for living, working (if there are any jobs left), and trying to comply with all of the laws and taxes heaved upon us. What is so sad is that citizens have no power to stop any of the above.

      The good news is that the total hatred of the citizens by Ms. Pelosi and others and their related Washington arrogance will finally defeat them. Pride always comes before a fall. It's unfortunate that innocent people will suffer before the fall comes. There will be a fall. It's just history and a fact of life.

    32. Pat, Vancouver WA says:

      If the liberals push all this stuff through and make it law, the bankrupcy courts will be filled to overflowing!

    33. Keith L, SC says:

      Jim J. from Fort Wayne has got the right idea. I'll take anything the government legislates, as long as ALL of our governmental officials, from the President on down, are required to live by the same legislation. Last I checked, they put their pants on the same way I do. Obama, yes we can.

    34. Leon, Durango, CO says:

      I knew Nancy Pelosi when she was a librarian. The socialist and atheist then has become the Liberal Fascist now. How did she became Speaker Of The House? She is about as qualified as Obama is to be President, and it shows as she abuses her oath (to protect and defend the Constitution). I think she got her job in the House as a reward for her successful Farenheit 451 project in San Francisco. And Obama got his reward for helping to bring down the American economy. Folks, the only thing that makes sense anymore is that these Democrats serve Plutocrats. Nothing in our national interest seems to get through, but if it is regressive, then the Democrats are behind it.

      Nothing could be worse for free enterprise than the VAT on top of the Income Tax. I knew it! I just knew it! They have destroyed individual Capital Formation with Income Tax. Now Nancy wants to destroy individual initiative, to tax products before they go to market as if value could be established by fiat. We have a pseudo democratic plutocracy and not a republican form of government. Therefor the collective governments of the United States are in fact unconstitutional! It is illegal, and RICO, through and through.

    35. Ron Thompson says:

      You can't vote out somebody when the voting populous is of the same mind and effort. All these "rich" california liberals are sitting back, unconcerned because they know they are safe, because they are the money tree for Pelosi. Pelosi will not allow them to be overtaxed by putting specific loop holes for her "rich" friends. If she is to be voted out she has to really make these people mad! The dirtly little secret is; Obama's plan or goal will seize their riches and Pelosi will have lead the adminstration straight to them. Just a matter of time!

    36. Louis L Cesar F Levy says:

      Fools ship never stops unless energic measures are taken to oblige him.

    37. Pictoblu- Chattanoog says:

      Some could see it coming miles away. Welcome to the late-comers. This story is about Marxist doctrine all the way down the line. Purpose? Destroy America, Western civilization from top to bottom and the influences that made it possible. We are being led to destruction by those who share the same political philosophy and goals as Lenin and Stalin among other 20th Century notables that include Hitler. They were all Marxist inspired socialists. What else would you expect. They are out for all the marbles. It is difficult for normal people to comprehend that the lefties would do this to their own friends, neighbors, associates and families and not care one whit or feel any shame or guilt. That is the scary part. Clearly the lefties are not compassionate, but sociopathic.

    38. Jerry from Chicago says:

      Can anyone be surprised at Ms. Pelosi's call for more taxes? And to call it a "value added tax"?

      Where the hell is the value?

      I've said it a hundred times before, THEY WON'T STOP UNTIL THEY GET THERE HANDS ON EVERY LAST CENT WE HAVE.

      THESE DEMOCRATS IN CONGRESS AND THE SENATE HAVE GOT TO BE STOPPED.

    39. Brad S,, Detroit, MI says:

      I'm not a conspiracy theorist by any stretch, but all of this stupidity in unrivaled.

      In America, Wealth = Freedom.

      Therefore, as Tim in AZ mentions, once they have figured out a way to part you from your wealth or your disposable income, they have effectively taken away your freedom. Very clever or very devious. When you start to look at everything as a whole, it starts to make sense . . .

      Cap & Trade – Not about saving the planet – it's about raising taxes on energy and driving manufacturing and farming jobs out of the USA.

      Health Care Reform – Not about reforming the Health Care Industry – It's about raising taxes and taking away your ability to choose your own health care.

      VAT – Not really about raising money for the government – It's about taking away extra money from every citizen and having companies lay-off more workers.

      The STIM'USELESS' package – Not about a short-term jump start for the economy – It was about political pay-back and another reason to raise taxes on those filthy, nasty rich people that make over $250,000 per year.

      If the government was really interested in raising revenues, they should institute tax cuts on everyone and on businesses. There is no way they can reverse the trend of deficit spending with the "real" unemployment numbers of around 15 to 20%. Because they don't want to. Keep as many people (voters) dependent on government as possible . . . Keep the cycle going. I am sure it is not a conspiracy. I hope.

    40. Ben C, Ann Arbor says:

      Hey, the have to pay for HR1388 somehow:

      You just spent $20 million to move members/supporters of Hamas, terrorist organization, to the United States. Housing, food the whole enchilada. HB 1388 Passed!

      Whether you are an Obama fan, or not , everyone in the U.S.A needs to know. Something happened – this bill was passed behind our backs. You may want to read about it. It wasn't mentioned on the news. It just went by on the ticker tape at the bottom of the CNN screen. Obama funds $20. million in tax payer dollars to immigrate Hamas refugees to the USA. This is the news that didn't make the headlines. By executive order, Pres. Obama has ordered the expenditure of $20.3 million in "migration assistance" to the Palestinian refugees and "conflict victims" in Gaza. The "presidential determination", which allows hundreds of thousands of Palestinians with ties to Hamas to resettle in the USA was signed and appears in the Federal Register.

      Few on Capitol Hill, or in the media, took note that the order provides a free ticket replete with housing and food allowances to individuals who have displayed their overwhelming support to the Islamic Resistance Movement (Hamas) in the parliamentary election of Jan.. 2006. Let's review …itemized list of some of Obama's most recent actions since his inauguration: His first call to a head of state, as president, was to Mahmoud Abbas, leader of the Fatah party in the Palestinian territory. His first one-on-one television interview with any news organization was with Al Arabia Television. His first executive order was to fund/facilitate abortions – not just here in the USA but within the world, using our tax dollars. He ordered Guantanamo Bay closed and all military trials of detainees halted (20). He ordered overseas CIA interrogation centers closed. He withdrew all charges against the masterminds behind the USS Cole and the 'terror attack' on 9/11. Now we learn that he is allowing hundreds of Palestinian refugees to move to, and live in, the USA at American taxpayer expense.

      These important, and insightful, issues are being lost in the blinding bail-outs and "stimulation" packages.

      Doubtful??? To verify this for yourself: http://www.thefederalregister.com/d.p/2009-02-04-E9-2488

    41. Wayne Holbrook, Flor says:

      I say "Pass It". The two leading voices admitting that Cap and Trade, and health care reform will drastically raise energy prices are Nancy Pelosi and John Kerry, both of whom married into mega millions.

      Pass the VAT tax, but make it highly progressive. It won't happen of course, but it is amusing to think about it.

    42. Freedomof Speech, TX says:

      It's fitting that this article and photo was published during the month of October.

    43. Whitney, Illinois says:

      Pelosi is a disgrace to this country. There isn't a shred of decency or goodness in this woman. She needs to go – NOW!

    44. randy faria says:

      how in the hell did we as a country let this happen to us (ie the complete fools destroying our country)

      It is pretty much over. I am fifty. They will be voted out in 2012, but by then they will have dug ourselves in such a whole it will take decades to dig out from. I won't live that long. Sadly, there is no will or way to stop these fools short of some absolutely dramatic revolt right in Washington DC-and while some are waking up there are still to many drinking the kool aid

    45. jen says:

      Congress and the federal government are making themselves irrelevant. They cannot do anything right. They can't stop spending, they can't pass a budget let alone stick to it, this admin won't protect us from our enemies, they can't educate, they want to micromanage us on every level but exempt themselves from the same rules, no guns, no smoking, no soda, no french fries… blah blah blah!!! So then, why do we continue to send them our money? We are the fools! It's time to secede from the union! To hell with the federal government! They aren't doing anything for us. Fire them like you would any other free market vendor! If we sent all our federal and payroll taxes to our own state, imagine what we could do on a local level, where the representatives are in our own back yard and have to hear our voices and listen to what we say!

    46. Beverly Cook, Housto says:

      I oppose any thing that Polesi tries to get over the American people. I oppose any health care program the government developes or manages. We are way over our heads in dept, thanks to Polesi. She should resign and maybe the government could pay some of our doubt. That is if China doesn't call in their loans, otherwise it will be our great-great-grandchildren still paying off their debit. Thanks for giving a raise to Congress, it doesn't matter that million of Americans are out of work.

    47. Colleen Oregon says:

      When ever Obama and his Czars open their mouth they commit money from my pocket to Mexico, India, or any country that smiles at them. I same get rid of all of them ASAP

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