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  • Morning Bell: How the Left Really Plans to Pay for Obamacare

    According to the Congressional Budget Office (CBO), over half of President Barack Obama’s new $940 billion health care entitlement is paid for by price-fixing Medicare cuts. Never mind that the President’s own Centers for Medicare and Medicaid Services says that these cuts would cause “roughly 20 percent” of Medicare providers to go bankrupt in Obamacare’s first ten years. The CBO has to believe these cuts will happen because they are required, by law, to believe everything Congress tells them. The American people are not. So the American people ought to know that instead of cutting doctors’ Medicare reimbursement rates by 21% as required by law on April 1, the Centers for Medicare and Medicaid Services froze payments at current levels until Congress could come back after Easter recess and rescind those cuts. Again. As they have done every year but one since the cuts were first enacted in 1997.

    This doc fix is big enough that, if it had been included as a cost of Obamacare, it would have sent the President’s bill into the red all by itself. But the half trillion dollars in Medicare cuts used to fund the rest of Obamacare are a much bigger problem. Even if we assume they all go as planned, President Obama’s budget would borrow 42 cents for each dollar spent in 2010; would run a $1.6 trillion deficit in 2010; and would leave permanent deficits that top $1 trillion as late as 2020. Add on the half trillion dollars in Medicare cuts that, given Congress’ track record, the American people would be naive to think will ever happen, and the federal government is looking at a pile of new debt.

    The left’s solution to this problem has been simmering for some time now. Senate Budget Committee chairman Kent Conrad (D-ND) floated the idea to The Washington Post last May. Speaker Nancy Pelosi (D-CA) told Charlie Rose it was “on the table” in October. And yesterday White House adviser Paul Volcker told the New York Historical Society it should be considered. The “it” here is a Value Added Tax (VAT), which is a fancy way of saying national sales tax.

    A VAT can be (and has been) structured in many different ways. But the real world results are always the same: higher taxes, more government spending, lower growth, fewer jobs and more special interest power.

    Higher Taxes: Don’t believe for a second that a VAT will help offset other taxes. International evidence clearly shows that a VAT is likely to increase the aggregate burden of govern­ment. Europeans used to only have a slightly higher tax burden than the United States. But beginning in the late 1960s, European countries began to implement VATs. Since then, the overall tax burden in Europe has climbed rapidly. And once a VAT is in place, the evidence shows that the tax rate rises over time.

    Higher Government Spending: Not surprisingly, with more revenues, European governments turn around and spend much more than the United States does. According to a study by the U.S. Chamber of Commerce, government spending grew 45 percent faster in VAT nations than in non-VAT countries.

    Slower Growth: According to the academic literature, there is a strong negative relationship between govern­ment spending and economic performance. In other words, more government spending means less economic growth and fewer jobs. Economic growth is driven by individuals and entrepreneurs operating in free markets, not by Washington spending and regulations.

    More Power to Washington: There is one economy that would greatly benefit from a VAT: Washington, DC. No VAT could ever be levied evenly on all goods and services. Due to political considerations, a VAT in addition to current taxes would likely exempt politically sensitive items like food, clothing, health care and housing. Industries would lobby heavily for exemptions from the VAT for the economic benefits described above. This would give Congress an even larger role in picking winners and losers in the marketplace. Success would depend less on ingenuity and hard work and more on the ability to gain political favor.

    Our nation faces a financial crisis. But low revenues are not the problem. Spending is. Heritage fellow Brian Riedl explains:

    Real federal spending remained steady at $21,000 per household throughout the 1980s and 1990s, before President Bush hiked it to $25,000 per household. Now, President Obama has a proposed a budget that would permanently spend a staggering $32,000 per household annually – and that’s before all the baby boomers retire and add another $10,000 per household in Social Security, Medicare, and Medicare costs to the bottom line.

    So the problem is not declining revenues, but rather a spending spree unlike any in American history. If Washington insists on spending $32,000 per household, it will have to tax $32,000 per household – an unaffordable and unfair tax burden regardless what kind of tax collects it.

    Rather than tax America into permanent economic stagnation, President Obama and Congress must rein in runaway federal spending. Simply bringing real federal spending back to the $21,000 per household average that prevailed in the 1980s and 1990s would balance the budget by 2012 without raising a single tax on anyone. Even returning spending to the pre-recession level of 20 percent of GDP would eliminate two-thirds of the projected 2019 budget deficit without raising taxes.

    Quick Hits:

    • According to the Treasury Department, President Obama and Democratic lawmakers plan to raise taxes on upper income Americans by $41 billion next year and $969 billion over the next decade.
    • Health and Human Services Secretary Kathleen Sebelius announced Tuesday that the Obama administration plans to use tax payer money to fund a “help desk” designed to educate “Americans about the benefits for them in” Obamacare.
    • The pension plans of Obama administration-owned General Motors and United Auto Workers-owned Chrysler are underfunded by a total of $17 billion and could fail if the automakers do not return to profitability.
    • The White House hinted yesterday it might cancel next month’s meeting with Afghan President Hamid Karzai and declined to call Karzai a U.S. ally.
    • A federal appeals court ruled yesterday that the FCC overstepped its authority in 2008 when regulators barred Comcast from managing Internet traffic from peer-to-peer, video-sharing services.
    Posted in Ongoing Priorities [slideshow_deploy]

    75 Responses to Morning Bell: How the Left Really Plans to Pay for Obamacare

    1. Paul Dibble, Ada, MI says:

      A very good article, but of course Obama and liberals are not interested in these kind of solutions. They see America as fundamentally unfair, that the "rich" have gotten their riches at the expense of the poor. The only way to correct this inequity, in their view, is to redistribute the wealth through targeted taxation and government spending.

    2. Jack Lohman says:

      ObamaCare is a dumb solution, when installing a single-payer Medicare-for-all system would eliminate 20% of our wasted costs which are consumed by the middleman insurance bureaucracy. Cutting doctor fees by 20% just eliminates patient care. But the insurance companies fund the elections and patients do not.

      Isn't our corrupt political system great?

      Jack Lohman

    3. jeannette giles says:

      You cannot state these facts any more succinct. I have often thought a national sales tax and abandonment of federal income tax would be a solution to distributing the burden of paying for government.Of course that would only work if the government was actually accountable and not building a "kingdom" of ruling elite. The government following the Constitution, should provide for the military and minimal regulations on commerce and get the hell out of our lives. The desire of this administration to maintain a "ruling authority" above the common people by providing redistribution is a farce, those being redistributed to do not receive any part of the "ruling authority" wealth, just their peers.

    4. The Screaming Eagle, says:

      We need to push for a FLAT TAX and the Feds should be forced to run a ZERO DEFICIT BUDGET!!

      Keep up the great work Heritage!

      Reposted on The Screaming Eagle fan page here http://bit.ly/cyutWE
      We must ban together to save America with a single voice!

    5. Richard Cancemi says:

      The Socialists, now running the country (contrary to the Constitution they all swore to uphold), have one goal in mind. They would destroy all individuality, private enterprise, and our entire foundation of original government. They have poisoned our education system; they have created a belief of entitlement in the public's mind. They are destroying us financially. They have people believing that only the government can grant "rights and freedoms." They have "created truth" via perception management over the years and the main stream media have slobberingly served their Progressive/Socialist masters. We have become a nation built on lies and more lies. Obama leads the pack of wolves who clothe themselves as sheep and the naively ignorant still refuse to see them for what they are.

      They are nothing less than traitors to the USA and have sought by any and all subterfuges and manipulations of perceptions to destroy America and reduce it to a slave state of Socialism.

      Europeans reel under the financial oppression of their governments. There is only one ultimate end-goal of Progressives for the peoples of the world and that is a One World Socialistic ruling class over the workers of the world. If that happens, and it is possible, God help us all!

      Do not ever be fooled by the Progressive uses of words and phrases. It is called Management of Perception becaus most people will beleive that what they perceive must be the truth without analyzing it. They manipulate people's emotions. Judge Progressives by the end-results of their deeds! People must think and decide intellectually, not emotionally, if they are to protect themselves from these evil-intentioned Masters of Lies.

    6. Joe Arsenault says:

      Quote, "Rather than tax America into permanent economic stagnation, President Obama and Congress must rein in runaway federal spending".

      Surely you Jest!!!! . Seniors did not get any COL increase in their social security checks this year. This is not a complaint,,, the complaint is Congressional pay was increased? And you think it's possible these people are going to rein in spending?

      Good Luck with that fantasy.

      Joe A

    7. Ken Jarvis says:

      We NEED ONLY Need One Tax,


      Where ALL taxes are PAID

      When the purchase is made.

      Let's talk about it.


    8. bigdave, ocala fl says:

      What else would you expect from a progressive(nicer name than communist…but the same no less) "president"? Robin Hood on a grand scale! Only, just how much longer can you steal from the RICH, and NOW from the NOT AS RICH, then from those who WANT TO BE RICH…then there is no money left! And what GOOD comes from GIVING LAZY PEOPLE MONEY? Uh, there is a LAW AGAINST FEEDING ALIGATORS IN FLORIDA!!! Any difference PAYING the LAZY? Is it just a way to keep them from EATING YOU?! Lazy people have GANGS…aligators DO NOT! Lazy people think its easier to rob, steal, home invasions are fun and carjackings are thrilling and hey, liberals have made jail BETTER THAN HOME! After CAP and TRADE and VAT our tax rate(including state taxes) will be 75%!!! Count on it…aint been wrong yet!

    9. Edwin D. Schindler, says:

      The way to break the Obama welfare state governmental model is to deprive it of continually more and more new revenue. If Congressional Republicans, particularly the 41 GOP Senators, can block the imposition of a value-added tax ("VAT") or any new taxes, then, at some point in the not too distant future, federal spending will have to be curtailed, if for no other reason than that the credit markets (including foreign bond holders and buyers) will refuse to purchase U.S. government debt at interests rates that Uncle Sam can reasonably afford to pay.

      If President Obama is seeking to borrow-spend-and-tax, as an alternative to the usual Democrat model of tax-and-spend, then Republicans in Congress must put the brakes on the spending by denying revenues, to the extent possible. This will likely cause a fiscal crisis, perhaps similar to what Greece is now experiencing, however, the sooner the U.S. reaches that inevitable point which will require a spending freeze, if not sharp spending cuts, the better. The last thing that the GOP should do is appear to be "fiscally responsible" by raising taxes, whether they be within the existing tax structure or a new type of tax.

      Contrary to the liberal media bias, the Supreme Court is quite likely to rule that the indvidual mandate of ObamaCare is unconstitutional. A ruling that the federal government cannot force the states to spend their own funds to set up the ObamaCare insurance "exchanges," without an opt-out, is also reasonably likely to be held unconstititutional.

      Democrats and their allies are seeking to dismiss any chance that the pending judicial attacks on ObamaCare can succeed, though the chances of at least some success by the end of 2011 is quite good when one considers the current make-up of the Supreme Court and that any changes would almost certainly entail changes to the "liberal" wing of the Court, not the five Justices who are considered "conservative."

      As such, Congressional Republicans, in addition to opposing new and higher taxes to deprive that federal government of what it needs to continue growing, should not assume, as Democrats would like them to, that ObamaCare is a permanent fixture of the land and must now be paid for. It need not be funded and, in all likelihood, will not survive judicial challenge, at least in its current form.

      The spending orgy of President Obama, while significant to date, is still more a matter of "proposed spending" than actual spending. It is the proposal for $10 trillion of additional deficit spending by 2020 that is of greatest concern, though the absolute level of spending is worrisome in its own right. This spending has largely not yet occurred, and Congressional Republicans, in any event, should not presume it to be inevitable and therefore wrongly believe that "revenue" must now be raised

    10. Don Harper, Lubbock, says:

      A VAT is built into the cost of everything. It is an invisible tax. The politicians love it because the people don't know how much they're paying in taxes.

    11. Lloyd Scallan - New says:

      This is no surprise. Most of us knew this was coming and know that their is much more yet to come. Can't everyone see what Obama is doing to this

      country? We all had better wake up and stop Obama NOW.

    12. MJF, CT says:

      Point #1 – Nothing government implemented has ever worked properly or at all.

      Point #2 – Adding more taxes will not cover the huge debt this administration is putting on us.

      Point #3 – If it didn't work in Europe, why try to make it work here?

      VAT's were a disaster in the European system so why mess with them in the United States? Just look back to history and you will see that every time a government "takes care" of its people, the whole thing goes to pot.

      "The budget should be balanced, the Treasury should be refilled, public debt should be reduced, the arrogance of officialdom should be tempered and controlled, and the assistance to foreign lands should be curtailed lest Rome become bankrupt. People must again learn to work, instead of living on public assistance."

      – Cicero – 55 BC

      Looks like we haven't learned anything from history!

    13. Wm; Ky says:

      As a Physician I am getting a bit angry as being considered even part of the problem with the cost of healthcare. I will not go into the abuses of Medicare and Medicaid I see on a daily basis from patients who lack concern over cost since they have gold cards and it "does not cost anything". I am a Physician in Ky. Not the "brightest bulb in the box" but went to school 13yrs past H.S. I am Board Certified in Family Practice and I make $85/hr. I am considered an Independent Contractor which translates to no worker's comp, no health insurance, no 401k, no added anything. Like many physicians I saw government regs, taxes, and lawyers (malpractice) make it impossible to stay in private practice. I work for a hospital and have no control on the cost of an office visit. I live in a 1200 square foot house, drive a 1987 truck, all for which I am grateful. I owe $175,000 which appears more and more unlikely I will ever be able to repay. Not sure I am so different from many of my colleagues. So you think a 21% reduction in Medicare benefits will help pay for this Bill? It is a Bill designed to bankrupt the country, to create a permanent subservient lower class. To guarantee an entitlement bought voting block and freedom for the Liberal Progressive Left to finalize their dream of a socialized America. We are debating and discussing the markings on the snake and ignoring the fangs.

    14. Gordon McCauley, Que says:

      I would support a national sales tax ONLY IF the 16th Amendment were repealed AND a 10% limit were written into the Constitution. There should also be a requirement that any sales or value added tax be listed as a distinct and separate item on all invoices or bills of sale. Taxpayers have a right to know exactly how much tax they are paying with each transaction.

    15. Normca says:

      This is the way of Obama. The spin-mister liars will go on their friendly MSM shows and say they inherited all of this from Bush and took bold action. This includes Fox's Mike Wallace's son and the"I am an eater Cavuto", both who develop a list of questions, then asks them; one by one without getting an answer and built into the question, with Cavuto, is an apology for asking it. Meanwhile the way we, in the Baby Boom generation will be down graded for our kids and their kids, rather than improving the next generation. The facts cited here are sensible and true, but do not matter to Obama's remaining constituents, the Bush haters and those who just want to win at any cost, as they are just waiting for what was coined Obama's stash. Next up Cap and Tax, then Illegal Immigration and to top it all off military capitulation. What industry is next ?

    16. gorio, calif. says:

      Appearently the average taxpayer and even the free-riders don't see the headlight on the spending spending train that is hurtling toward them at very high speed. The VAT is the perfect way for the dems to keep the lid on with the "free-riders" being tapped to kick in part of the booty. The dems figure that "poor people" won't notice the tax being collected in higher product prices and will blame it on the greedy manufacturers, Remember the rule "never let a lot of good demonizing go to waste" as decreed by comrade Rahm!! The present leaderships most evil legacy is passing on to the next generation that it is "OK" to deceive, manipulate and steal from your fellow citizens for nebulous reasons like "HYPE and CRINGE". We really did NOT need to experience the communist system. Why didn't he just move to Cuba?

    17. Barb, Delafield, WI says:

      More taxes. Of course. Bend over folks. It's change we can believe in.

    18. don ballew says:

      I'm for the sales tax but we must get rid of the graduated income tax.

    19. toledofan says:

      I think after all that has happened over the past year, TARP, the bailouts, stimulus 1 & 2, high unemployment, hugh deficeits, and a government spending frenzy like never before, no matter what sound advise is given, it won't matter until this Congress, the Administration and this President are out of office. Each day it becomes clearer and clearer of what they are trying to do and they will never change their ideology or change course. The good news for the country is that, even though it's hard to watch and it's painful for many, the Democrats have dug a their own grave and it will be a very long time before they can pull themselves out. At least we are seeing first hand what the hope and change was all about; it's too bad so much suffering has to accompany each lesson.

    20. E. Jones ,Monroe, OH says:

      The enemy within,our own government and the President are the enemy of America. Poverty for all. How's that foir hope and change.? Instead it's Slavery and Tryanny!!! Citizens of America are the oppressed. Health care was never about health only power, lust, greed, and a regime for one party power

      like Stalin.

    21. David, Washington St says:

      I cannot believe that Heritage and some of the American people are the only ones that see the writing on the wall. How is it that congress and the President, as well as many of the state governments, fail to grasp what they are doing to the country?

      It is time for a wholesale change on Capitol Hill and at 1600 Pennsylvania Ave.

      Not only do the Democrats need to go, but also the Republicans that ran for 8 years spending their way as if no one cared.

    22. Tater Salad says:

      All that needs to be said is that the 2010 elections will be the beginning of "Repeal and Replace". This statement has two meanings.

      Repeal and Replace:

      1. To repeal any democratic attempt to get into elected office nation wide.

      2. To replace these democrats with fiscal conservatives who cherish the Constitution of the United States.


      3. Repeal all of the Obamacare health initiatives that have been crammed down America's throats behind closed doors.

      4. Replace Obamacare with a sound, budget wise system, attacking all points of the healthcare system to bring the best healthcare to Americans at an affordable price without mandates.

    23. Jim, Clearwater says:

      How do those of us paying Social Security and Medicare taxes all these years. Ask for our investment back? As I understand the explanations when these were enacted. The funds would be held in a trust until the time we would need these funds or retire. Now as I understand it; The funds have been used by the goverment to balance budgets in the past, leaving an IOU in place of these funds. I also understand those are NET IOU's with no interest.

      So back to my main question: How do we call in our markers? If we can do this, would this not cause the "PONZI Scheme" to collapse and expose those responsible to prosecution? The same as Bernie Mahoff? How do we bring charges against those most responsible?

      This "New Math" perplexes me.

    24. Florence, Az says:

      Love your articles. How can I get a pocket size book of the Constitution? Thanks Carole Power 4015 N Hidden Canyon Dr, Florence, Az 85132 I heard it on Glen Beck or Sean Hannity

    25. Al Wunsch, Fl says:

      If we're going to rework the tax code, lets get rid of the 16th(?) amendment and implement the Fair Tax. As I understand a VAT tax, it's an insidious tax, easily increased and not transparent to the victim(consumer). Why do you refer to the VAT as a national sales tax? To me, a sales tax is a specific amount taxed at the point of purchase and very visible to the consumer. The VAT is applied at every turn of the development of the product so that when you purchase a product, who knows how many VATs have been applied.

    26. Mike Studdon, Danvil says:

      This is an excellent article. Spot on. We are headed for a financial meltdown, which I believe some of our leaders would not mind (as it would give them an opportunity to further grow the govt and "take care of us little, stupid people." The debt numbers are truly staggering … and worsening as they go in the wrong direction. It really chaps me off that Pres. Bush was such a big spender. There are supposed to be checks & balances, but when you have a Republican who professes to stand for a smaller govt, but then goes out and substantially grows the govt, well you are going to have big problems. Obviously, the current administration is out of control when it comes to spending.

      The only critism of I have of the article is the "household" numbers used at the bottom. Thomas Sewell has an excellent book that talks about how "household" stats can be very easily manipulated. So I always prefer the individual numbers.

      Other than that minor gripe, EXCELLENT article.

      Mike Studdon

      Danville, CA

    27. al cicinato, claymon says:

      I see the change but I have no hope. Is it time to for me to give up? Is this what the American people want? Is this what they voted FOR!!!!!!!!!!!!!!

    28. Blair, Franconia, NH says:

      Now we're hearing about a VAT. ( A Value Added Tax). This is from Paul Volcker, the

      Chairman of the Federal Reserve under both Jimmy Carter, and Ronald Reagan. This

      half-assed, half-baked scheme to pick our pockets, is HIS IDEA. Barack Obama, when he was running for President, said he wasn't going to raise taxes on people making under two hundred fifty thousand dollars, implying that John McCain would.

      Obama lied his way into the presidency. When he loses re-election, and he will, he'll

      be like Jimmy Carter and George H.W. Bush. Why? Because George H.W. Bush once said "READ MY LIPS! NO NEW TAXES!" He lost re-election to Bill Clinton.

    29. Chuck says:

      You are right on. Americans have largely allowed politicians without wisdom and motivated by the desire for power and $ lead this nation to poverty. We are headed for bankruptcy.

    30. Mike New York says:

      If it moves tax it, if it keeps moving regulate it, if stops moving subsidize it. That is precisely where we are with this Frankenstein Congress that rams down tax bills disguised as health care bills the American people do not like nor want, and is immune to reason, logic and the voice of the people. Obama and his staff of igors and this democratic congress have this country petrified and we will indeed be subject to the same type of medicine that created Mary Shelly's famous but evil and horrible monster.

    31. Chuckwagonchuckie2u, says:

      Let me see if I understand this proposal for expanding Medical Services.

      Those working for the Federal Government including the Washington Elite will get a pay raise and all of their insurance benefits are not affected by Obamacare.

      Social Security got a pay cut for all the Old People, Medicare( An OLD Tax Payers INSURANCE PLAN) will TRANSFER services(Rationing) and funds to

      Medicad (Free Stuff for non-tax Payers ),Self Insured people will be fined or go to jail for refusing the NEW DEAL INSURANCE PLAN, Small Business Owners will not be able to insure themselves let alone thier workers, the day Obamacare goes on line there will be a shortage of a few THOUSAND Primary Care Physcians(Talk about waiting in line),Those Docs working will get a 21% cut in fees(Not the Elites PC Doc) and all over 55 will get FREE END OF LIFE procedures for an early demise.

      I suppose what is left of middle class America will support the Elites life style and all the Poor people who pay no taxes anyway with the Government mandated tax increases to 75% of their income.

      Instead of an increase in the Quality of life for the Aging Middle Class with added years of life you can expect the average Life Span of an American to drop below age 55.You can bet what is left of your bank account you won't make it to 80.

    32. Bob Walker, Spokane, says:

      Value Added Tax = Complete restructuring of all distribution channels.

      Depending on how it is structured a VAT can cause the total and complete restructuring of all distribution channels. Thousands of businesses will close and hundreds of thousands of workers will lose their jobs.

      If a product is taxed every time "Value" is added the lowest cost product will be the one with the fewest steps, "Value added" from the manufacturer to the consumer. Pick a product and run your own scenario. How many steps did that steak take from the steer to your table? Rancher, auction yard, trucking, feedlot, trucking, slaughter house, distributor, meat market, your purchase. 7 steps between the rancher and your purchase. 7 times "Value" was added. 7 times the VAT was applied. So the "winner" in the market is the one who can eliminate the most steps in the distribution chain and every eliminated step will reduce employment, put business out of business, and reduce the VAT collected. History has also shown that the quality of product and service are greatly reduced along the way.

      Get the point!?

    33. Gray-Stroke Republic says:

      Good post about voting them all out BUT it will NOT happen….YES we are that stupid and short sighted…..YES we are really bizzy like fo sho' wid 'Mer'can idil and dansing wid dah starz n all dat……

      So don't get your hopes up about voting the bums out it will not happen…..and don't expect Palin to act like a conservative and don't expect the Tea Party to be the winning choice over the GOP. The Tea Party will just get a new Progressive like Newt…bahdah-bing-bahdah-boom co-opted again like the GOP all in less then 2 years record time. Both parties are co-opted with Progressives for decades and both are taking this nation to global marxism. Only one will get you there slower…(Bush) and one will get you there faster (MaoBama) take your pick. Since we are unable and unwilling to hold Conservative accountable. Heck we could not even get Debera Medina a good shot, Texas chose globalist darling Perry……so any wonder why I'm so disgusted. And please keep justifying why Palin is a conservative right…..it pains me to agree that she is a red herring and you all keep falling for it hell when will you folks ever hold any conservative to the fire, if not her then who and when……with her supporting Muck FuCain again and again…I'm sick and done and not sure if I will ever vote in national elections…..gutless GOP leadership I'm sick of ethnically challenged morons whining and using the race card…….sick…sick…sick…of it all….ok you all can go back to the droning of MSNBC and the Communist Network News channel…etc ………Hannity refuses to address Muck FuCain's progressive policies and amnesty loving bill passing in the past. So I quit listening to hannity….I'm sick of the phony's taking me for a patsy…….so muck them fall.

      oh yeah and my hyphenated American lineage is hispanic, germanic, spainard, so go ahead libtards throw the race card at me too……I'll help place that card where the sun don't shine…..lol…….ah ain't skeered, like the white guilt laden weenies claiming to be GOP conservatives…………laffing into the sunset…..Haaaaaaaa…..

    34. LeRoy says:

      We must get Obama Out Plus all the rest of this government.! If there was only a way to *Impeach O bama…. before he ruins all of us!!! We do not want what he is doing!! He doesn't believe in the Constition!!!!! It must be stopped!!

    35. Rich Walton says:

      Great article! Once a tax is established it usually only goes up with time. The authorities will likely try to combine it with tax decreases to make it more palatable, but then the tax decreases will go away and increases will follow. So long prosperity! Educating America about this tax might be the only way to stop it, so thanks for doing that with this article! Keep it up!

    36. Bill. South Carolina says:

      Of course the excessive spending has to stop but the answer to this situation is the Fair Tax. The Fair Tax is just that, a fair tax to everybody.

      The Fair Tax will eliminate the corrupting power of the Congress and the Lobbist and give the power back to the people where it belongs. Tax revenues from the Fair Tax would generate as much or more revenue than the Government is taking in now but would be fair to us, The Citizen.


    37. Bill Fitzgerald, Ove says:

      The above article says that a VAT inevitably and always leads to higher taxes, higher government spending, slower growth, fewer jobs and more special interest power to Washington. Most of that seems logical to me. But, in a recent Newsweek commentary, Fareed Zakaria, in advocating for a VAT, said (without evidentiary support) that the economies of Scandinavian countries who have a 25% VAT have grown as fast as America's economy over the last 3 decades. Could this be true? How can I learn the truth? Anyone have any suggestions? Do they not have an income tax?

    38. tucanofulano, USA says:

      $940 Billions "covers" 6 years, not 10. The first 10 years of 'obamacare' will cost closer to $2.4 Trillions.

      Obama and the other socialists will push to add a VAT on top of other taxes, except of course for their campaign donors' interests.

      None of the increased tax burden will be used to reduce debt, and there will be no reduction in spending – only more spending on job-killing, economy-killing, USA-destroying socialist programs designed to bloat government payroll and increase micromanagement of each individual's lives. Engles, Marx, and Lenin will be proud.

    39. Individual says:

      "Original Democrat model of tax and spend"? Every Republican President / Congress in power since the 1960's has left the country in a deficit. Not a single one left the government's finances in the black. Including Reagan, Bush Sr. and Bush Jr.

      If Conservatives want to be the crusaders for fiscal responsibility they need to actually show the AMERICAN PEOPLE one time that they're not just talk.

      President Bush spent 8 years in office, the two noteworthy things that he did were to "lower taxes" in a way that reflects right wing principles rather than the country's need and start 2 wars. EVERYTHING in this country went up 2 or 3 times as much during the Bush era. Talk about inflation? How much was gas in 1999? How much were homes in your area in 1999? How much were your local community colleges charging in 1999?

      Republicans work under this mindset that claims that when you lower taxes on the rich and corporations, you actually cut inflation and benefit everyone. In reality, this country saw the highest gap between rich and poor in 2008 that IT HAS PRETTY MUCH EVER HAD?

      Liberals feel entitled? Have you conservatives ever read Adam Smith? He OPPOSES a flat tax. "It is not very unreasonable that the rich should contribute to the public expense, not only in proportion to their revenue, but something more than in that proportion"

      Republicans have been in power of the White House for the majority of the time since the 1950's They have been in control of Congress for the majority of the time since the 1950's. This country has ended up where it is today not under the watch of the Democrats, but the Republicans. Let go of your principles and and please try to be more objective. Conservative principles are valuable but they must have an effect, so far, there has been none!

    40. Richard Cancemi says:

      For once Ken Jarvis makes some sense. A National END-PRODUCT sales tax in single digit amount which cannnot be raised without the consent of the people via referendum.

      Don't be too generous with the Feds; the more they get, the more they spend. And don't forget the sales taxes imposed in each state. That too needs to remain in single digit amounts.

      A Value Added Tax (VAT) puts a tax on a product at EVERY level of improved value of a product or raw material before it comes to you for the "final" tax! That amounts to "many" taxes on the one thing being produced!

    41. Jeanne Stotler, wood says:

      Nothing in Life is Free, even Freedom is not free, there are those who pay the price everyday. Go to Arlington Cemetery and just sit and see how amny funerals are held everyday. Every 15 min. ther is a funeral, thes may be the newly killed in Iraq or Afganastan or the may be the veterns from WWII, Korea, Vie Nam, they all paid for OUR FREEDOM as did the thousands buried there and in other military cemeterys. This administration ha NO IDEA what this country is all about, they belittle the Constitution, snub our allies and kiss up to our enemies. He said he was "ging to go over ever dept.'s expenses, line by line and cut the fat" I want to know WHEN?? Instead he adds more debt, ads more employees to Gov't. payroll. Last I heard taxes paid for Gov't. workers, there benefits and health Ins., where is the money going to come from?? It now takes the average person 5 mos. to start keeping money they earn, soon we will be like europe and paying over 70% of our income in taxes, anf lose the freedoms our forefathers fought and died for.

    42. Leith Wood Richmond, says:

      Never give up working against Obama and his Progressive, Liberal, Socialist thugs and never give up hope. Stand up to their lies, speak the truth openly and vote to save our country in November and 2012 by kicking them out of office. This is our country and we must fight to get it back. The Constitution is not some work in progress. Pray,

    43. Darrell, Denver says:

      I wonder how much more of inflatabled facts….let's call it what it is….(LIES) we Americans will swollow?? I lived in Europe for 2 years and the VAT program is an "extreme tax" regardless how the hand is played. This is ANOTHER government program that requires more people to handle more paper to build more red tape. Please come on November!!

    44. Dennis Social Circle says:

      Socialism by any other name is still socialism. The obama team is hell bent on destruction of this country and all that has been fought for. We as voters must take this country back in November, we must make the Congress understand they work for us. MAY GOD HAVE MERCY ON THIS COUNTRY AND ITS PEOPLE!

    45. Janice - Mobile, AL says:

      What no one is talking about and everyone seems to have forgotten is the REAL agenda of this REGIME – to cripple our ecomomy, terrify Americans into submission and turn us over to the U. N. The plan behind the plan is ONE WORLD ORDER.

    46. bigdave, ocala fl says:

      DON'T WORRY PEOPLE, BE HAPPY! Lets stick together and when the time comes we are going to make history by sweeping every DEMORAT OUT OF OFFICE regardless of how long it takes,and we are going to DEMAND the "new regime" do EXACTLY WHAT OBAMA and his gang of COMMUNISTS are doing…they will break every law to repeal/correct every harm this rogue group of criminals have done. Laws made by CRIMINALS( they broke every law and still are not arrested! But criminals still!) SHALL NOT STAND! AMERICA IS A COLOR-BLIND SOCIETY BUILT ON FREEDOM, HARD WORK, WORKING TOGETHER AS A TEAM and TAKING CARE OF EACH OTHER! Kind of like the MAGNIFICENT women of the UCONN basketball team. You know, the TEAM LIBERALS HATE cause they ALWAYS WIN!! LIberals wanted them to stop playing, or give other teams points cause their FEELINGS were getting hurt playing this AWESOME TEAM! And HOW FITTING, this team whish is the embodiment of the AMERICAN SPIRIT beat a team from LIBERAL STANFORD, CA!!! SOME TIMES GOD SENDS MESSAGES IN LITTLE WAYS! LIKE MOUNTAINS OF SNOW AMIDST THE GLOBAL WARMING SCAM!!

    47. Hollie, Alabama says:

      To Bill in KS – might want to check out this article


    48. B. Lowe Utah says:

      There isn't anymore money to spend. We are already bankrupt. There is no gold to back our money. The only thing he can be going for is a slave state. This is not socialism. It is communism. We have our own Adolf Hitler in the White House. Need I say more?

    49. SAMUEL says:

      The democrates will forever be the party that put the first black in the White House to get their politices in office and ruin the UNITED STATES of AMERICA. YES they will forever be remembered for destroying AMERICA.

      They will be remembered for putting in office a left wing communists president. Peloise, reid, rangel, barney franks ( the gay) , watters, conyers, boxer, lets put all the california democrates in the same group. They cannot keep their on state from going bankrupt. they have the black patterson in new york and that state is

      also bankrupt.

      Now the republican party thought if they put in a black r n c everthing would go their way. As long as they had a black all would be well to win all blacks.

      What is wrong with this , blacks will only vote for a party that gives them more than they are getting from the AMERICAN TAX PAYER today. And if they don't get everything they want IT'S CALLED RACIST. We WHITES are fed up with the blacks living on the race card.

      Travis smiley and his black regime has been around since the early 1960's pushing their black agenda's.

    50. Dave, Coatesville, I says:

      Obama is trying to follow in FDR's footstep, do you realize that FDR, the founder of the Great Society. FDR raised taxes so high he extended the Great Depression for a period of 7 years. At one time he issued a executive order to raise taxes to 100% on anyone making over 25,000 dollars. Thankfully congress stepped in and stopped the order. But who in this congress of socialist will try to stop Obama?

    51. howard newark de says:

      Can't wait until Nov! Get these cheats,liars,progressives,socialists,commies etc out of Washington.We are going to take our country back before these radicals destroy our country. Why isn't the major media investigating the 30+ "czars" surrounding the "socialist" president.Why didn't they do their job during the campaign? Everyone of them should hang their heads in shame.They just can't explain why there is a drop in viewers.

      Let's put pressure on both houses of congress to refuse the funding of the "czars" until they come before congressional committees and be questioned about their backgrounds.

      Congress needs to get a backbone and tell the president and his Chicago hoodlums enough is enough! As we know nothing will be done because the liberals and democrats will not "buck" the threats and arm twisting.No matter, they will be looking for new jobs after Nov election.

      Americans stand up and be counted! Get out and help elect the conservatives in your district and state.,

    52. Roger / Clarence, NY says:

      The wheel of GOD'S justice might seem to grind slowly; however, it grinds exceedingly fine – and the end results are eternal. This president sees himself as a "coming world dictator." He suffers from hysteria and illusions of grandeur. Gladly, Americans still have the "power" of the ballot box available to them. We had best hear the Call in the November elections because this freedom can also be taken from us if we remain apathetic.

    53. Charles Nystrom, Sou says:

      It is a diversion from the task at hand to continue analyzing the recently passed HC legislation. Rather, it is sufficient and to the point to acknowledge it will not and cannot be implemented without destruction of this Constitutional Republic.

      Therefore, the task a hand is simply to refuse to participate in any of its provisons. Leadership must emerge to define and solidfy the resistance so that the program stalls until the coming November elections after which there will be a majority in the House that will prevent funding.

      One simple move is for a number of states to refuse to participate in any enlargement of Medicaid as it is that is the essential mechanism to transform medical care from private to government auspices.

      By 2012, it is reasonable to believe there will be a new administratio that will begin to restore this nation to its earlier vitality…..led by the private sector.

    54. Charles Nystrom, 121 says:

      It is a diversion from the task at hand to continue analyzing the recently passed HC legislation. Rather, it is sufficient and to the point to acknowledge it cannot be implemented without destruction of this Constitutional Republic.

      Therefore, I suggest we might refuse to participate in all of its provisons.so that the program stalls until the coming November elections after which it can be anticipated there will be a majority in the House that will prevent funding.

      One possible move is for a number of states to refuse to enlarge their Medicaid program as it is that is the essential mechanism to transform medical care from private to government auspices.

    55. Brian Winter says:

      The Dimocrat voters brought President O'Vomit to power and he is drunk with dictatorial tyranical narcisisim to advance his socialistic white hating agenda. The foreign born privileged half white marxist is embarrassed about his college grades and Kenyon birth. He lied to get elected and will continue to lie to obtain his objectives. His dad abandoned him when Barry was a toddler and his Mother and her parents are self-admitted communists and raised him as a communist. Since he knows nothing about American history, culture or basic economics, why is this community agitator LOSER calling the shots for 300 million people that worked hard and died for Liberty to preserve for our children with freedom, liberty, justice and fairness for all it's citizens? ( And I am not talking about the illegal mexican vote that Obama drools over in his political dreams for his shameless lust for power or the blatant financial support to buy minority votes and support Muslims around the world and diss Israel and England, our loyal friends). What about the American middle class working citizens? REMEMBER US? The ones that pay the taxes, the people you Mr. Obama are working for, but still hate b/c most of us are WHITE.. and to think we gave you a priviliged welfare life and a free college opportunity to be the "President of the United States", YOU ARE A SHAMLESS LIEING FAKE… You shrink to the floor and Hollywood and MSM makes you politically correct. The SHEEP HAIL OVOMIT as the Muslim (white hating) Messiah !!!

    56. Jim Roumeliotis - Hu says:

      A flat tax and a mandatory ceiling on government spending is the answer……The government must stay within the boundries that the taxes allow…..not spend and tax based on what government has spent. Areas that would offer instant tax relief would be supporting the existing laws of illegal immigration, walfare, social services and public aid. Follow the laws and we would benifit greatly.

      I guess it is to simple……..

    57. Brian Winter says:

      I am in favor of the VAT tax for one good reason. The VAT tax hurts the poor more than the rich. I am not saying I want the poor to suffer, I am saying this could be the catalyst to turn the ignorant MTV mass's against the false messiah's huge spending spree. I am against printing paper money to pay for government spending, b/c it won't awake the people until it is too later. Raising taxes will awaken them sooner than later. The hit in the pocketbook is the best way to shock the public into waking up and they need a good JOLT INTO REALITY… IMPEACH OBAMA NOW…

    58. Chuck, Arizona says:

      Hey, Individual, I suggest you stop staring at your diverticulosis and get your facts straight. Democrats controlled the House of Representatives for almost 40 years until 1994 when the American people put the brakes on Clinton. Things started going downhill again in 2006 when the Democrats again took control of the House. People like you better wake up before we lose this country for good. Look, just move to Cuba so you can live like you want and stop voting for socialists who will screw up our country.

    59. Sue From Detroit says:

      The Obama Adminstration is a communist reigne. They know this health care system will not work. Punish the middle class or destroy the middle class so the political class can become richer and stay in power. They rely on the poor to be dependent on them so they can keep their power. The more poor or dependent class there are the better off the Obama Adminstration is.

    60. Bob Squires, SC says:

      You all should check your history and facts.

      A few "socialists" that conservatives claimed would ruin the country were FDR with SocSec bill (when the country's deficit and percent of GNP was far higher) and L. Johnson with civil rights (when our social conflict was at it peak). Good leaders do the right thing when it is the hardest.

      And as for taxing – the upper 5-10% should pay more. Check gov statistics (published during Bush 2nd term) – net wealth of the top 10% grew over 5x of the middle class, while the bottom percentiles shrunk. Those who benefitted the most and some who nearly bankrupted the country with their leveraged Wall Street greed should now be "taxed" to help the recovery.

      HC is cost prevention! An annual checkup and preventative care saves many times the cost of emergency treatment later. It's basic quality process most applied in business.Look at the bill and the metrics required and best-in-class benchmarking to be appplied. Both are basic tenets of running a sound business.

      And FYI – I am one of those people who will be called upon to help pay the tax and I do so willingly to help my country.

    61. Angel says:

      Again, you all didn't seem to have a problem jumping into 2 wars based on lies and spending TRILLIONS (and counting) to do it.

      Or giving TRILLIONS of dollars in "no strings attached" bailouts to greedy banks.

      Where was all this "outrage" then?

      Oh no, but try to keep deserving citizens healthy and it's all "ObamaCare" this and "Spending" that.

      Please. Spare me.

    62. Pingback: How the Left really plans to pay for ObamaCare


    64. L.C.Lawless Eagleville Pa says:

      b o is hard of hearing

    65. Curious Person says:

      The real danger with this administration is after the November elections. When it is discovered that their majority in both the house and senate are gone, they will rush to try and pass everything in their arsenal. Be ready for this salvo.

    66. CHyatt, Albuquerque says:

      Don't forget to vote and don't forget to tell your neighbors to vote. Health Care Plan cannot be supported. It will result in lost jobs and more wasted taxes. Make sure you send a message to the White House, "Enjoy your four years". And while you are at it, email your Congressional leaders. The message to them, "your out in 2010" and we will be coming for the rest of you in "2012". It's high time politicians start to understand that their job is not to spend our tax dollars as if there is no tomorrow. And there won't be if they keep this up.

    67. Chuck, Arizona says:

      Hey Squires, does the Constitution matter? What is being done with this health care bill is unconstitutional. The federal government has no right to mandate the purchase of a good or service and threaten jail or fines for non-compliance. As for taxing, check the statistics at irs.gov. The top 10 percent of income earners currently pay over 80% of all federal income taxes. Your misinformation is self-evident. Wall streeters bankrupted the country? You're kidding! How much has this Administration spent in the last 15 months? How much has Congress spent? When was the last time you saw a wall streeter write and sign a law into existence? They have no power over your life. But the Bamster and the socialists in Congress do. Wake up and stop voting for socialists. Government is not business. Government stifles free market business!

      And Angel, remember 9-11? They started it. Bush just had the stones to protect the country and go after our enemies. Obama wants to make friends with our enemies. If you want to bend over for the terrorists, fine. Not me. You people who want the government to take care of you make me sick.

    68. Charels A. Berg, Buc says:

      You Write, "According to the academic literature, there is a strong negative relationship between government spending and economic performance; in other words, more government spending means less economic growth and fewer jobs. "

      The reason is simple, and it should be pointed out, strongly. Growth depends on new ideas, new products and services that awaken the latent desires of the public. Those ideas require financing to convert them from mental constructs into palpable products. Every dollar that the government takes out of private hands is one taken away from financing the new ideas that result in growth.

      There are basically two visions of any economy: the static state, wherein everything remains the same,and the function of the sovereign is to distribute production according to some notion of fairness. This was the fiction behind the Soviet system, and it is the fact behind the socialist states of Europe.

      Then there is the dynamic concept, wherein invention and innovation proceed, driven by the innovator's recognition of latent desires and his conceptualization of some means to satisfy them. If enough money remains in private hands, the innovator has a chance to convince some people to help him create the new wealth that his ideas imply. To make such a system work requires liberty more than security. the ultimate result is liberty with greater security, and that is something socialists cannot conceive of.

    69. Pingback: Volcker And Elmendorf Gets In The VAT « Around The Sphere

    70. Pingback: Paying for Healthcare « Thinking in Christ

    71. Pingback: MoConservativePatriot.com » Spending us into serfdom

    72. Orphe D, United King says:

      A Value Added Tax? good or bad for the middle class? Please weigh in—-

      Wake up and smell the coffee! How do we pay down our national debt? taxing Income or consumption is one thing but both income AND consumption?

      Tough times in America: Who's to blame? Part 2

      Read on at http://wp.me/pPdcm-1P

    73. Mary Seattle WA 9807 says:

      I am really disappointed that President Obama has proposed legislation that continues to raise taxes and redue services to to wage-earners who are the people who try to save and start their own businesses. This is the American Dream;and it is becoming a mirage. Federal policies aimed at creating large entiltlement programs that require large federal deficits and an expanded national debt just seems to be fiscally irresponsible. I support a major revision to the U.S. Tax Code ( a flat tax or sales tax that replaces income tax) and a major revision to the U.S. monetry/financial system if the U.S. government can not enact regulation that prevents future financial crises that can continue to wipe out the weatlth of middle class working families.

    74. Mary Seattle WA 9807 says:

      see http://www.mary4money.com for a review of the national debt crisis.

    75. Ed Zierlein Coeur d& says:

      Come on, folks! Those of us who can add, subtract, multiply and divide and looked at Obama's first 8 months knew that he was lying, day after day, speech after speech! I have gotten to where when I hear Obama is giving another speech, I just shut off the TV. We here decided not to put any credence in what Big O SAYS, but watch what he and the 30 thieves (czars) actually DO.. Once the whole "Health Care Reform Bill" is finally understood, we will all know how successful this procrastenator has been. We the people are going to pay for Obama's lies and actions.(and out children and grandchildren).

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