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  • Obama Calls for a VAT

    President Obama has consistently ducked the question on whether he is considering a massive tax hike in the form of a value added tax (VAT) – until now. Yesterday in an interview with CNBC, the president made clear that he is open to a VAT – once he has seen the recommendations his Debt Commission makes.

    The president’s comments spell out what has been obvious for months: the debt commission is a stalking horse for the VAT as the solution to close massive deficits today and in the future.

    A VAT would be a massive tax hike that would transfer trillions of dollars each year from the wallets of every American to Washington. It would permanently slow economic growth and lower the standard of living for generations of Americans to come. It would also be a bottomless well for Congress to go back to each time it wants more of our money to pay for new spending programs. Once a VAT is in place turning back the growth of government will be next to impossible and the efforts of President Obama and his congressional allies to recast the nation into a full state of dependency on Washington will be complete. The stakes are that high.

    As JD Foster pointed out last week, passing a VAT has been part of President Obama’s long-term strategy all along. First he had to jack up spending rapidly to create a rapidly approaching fiscal crisis. He has accomplished that goal. Next, he must establish that cutting spending is impossible because it is in some way inevitable and essential, and thus the result of something beyond anyone’s control as opposed to — say — his own policies.

    That leaves tax increases as the only cure for the deficit. The Debt Commission will fit neatly into this plan should it recommend a VAT. President Obama can then take comfort in its findings and point to this panel of experts which found that the VAT is the only solution to the crisis.

    Last week, Senator John McCain (R-AZ) offered a sense of the Senate resolution that stated: “It is the sense of the Senate that the Value Added Tax is a massive tax increase that will cripple families on fixed income and only further push back America’s economic recovery.” The Senate voted 85 to 12 in favor of that resolution.

    Foster goes on to say, Americans who want to save their country from the damage a VAT would inflict need to challenge anyone running for office, anywhere in the country, to take a stand on the VAT just as Mr. McCain’s colleagues did in the Senate. Every town council member, every mayor, governor, or congressional or senatorial hopeful should be pressed to declare whether he or she stands for or against the VAT. As they do, it will become apparent to all that the United States is not a VAT country.

    Posted in Economics [slideshow_deploy]

    6 Responses to Obama Calls for a VAT

    1. Billie says:

      What wouldn't obama decide that wouldn't give him more power and control? How to arrest a fraud? hmm…

      How about everybody pitch in 50 bucks per life in their place of residence and that can be the government's budget with no exception and the rest is up to the people? Could you imagine if most everyone was self reliant living in this country?

      How strong and free this county would be?

      I still can't see any of what Obama is doing has much to do with the Constitution?

      And what he is violating shows necessary reprimand.

    2. Billie says:

      sure would cut them down in size in more ways then one.

    3. G Rome Laguna Niguel says:

      Who would have thought that there would be such a disengenious payment coming down the line after the multiple expenses paid out by the federal government over the last ten years? Two fronts of a war, a recession that may well be considered a mini-depression, and countless bills coming due for the extended entitlement programs developed and continued by this nation have resulted in nothing less than an obvious seizure of the paycheck from every upright and contributing citizen of this nation.

      I blame many. I blame myself. I blame our leadership that provided the sinister reasons for expanded military endeavours in the face of a terrorist attack. Yes, I bought in to that idea that Iraq had chemical weapons and potentially nuceear capabilities (illiterate types, please understand that there is no noo-cu-lur intonations there). But that is done, and here we are. I applaud the tough decisions to invest our future earnings in stabilizing the economy — you remember, the ones that were originated by the Bush Administration almost as an admission of absence, then furthered by the Obama Administration. They were enacted as a response to a critical moment, and they seemed to stabilize the situation eventually.

      Now we have an aftermath with which to deal. The piper may have done his job, but the price is certainly significant. A Value-Added-Tax is not the way. It may seem strange for such logic to play out with this forum, but if an analogy may hold, the government placed a well-timed and well-positioned tourniquet upon a gaping wound. There are other ways of spanning the expanse of this expense.

      I am aging rapidly in this climate, but I still recall multiple classes where I learned the reasons why this nation was founded. The wise men that proved that an insurrection for good reasons would eventually triumph could never foresee that we would devolve in to our modern-day European ideals when it comes to such new means of taxation. The Value Added Tax is just a different guise for the same affronts that launched a New World model of government and rapproachment for the rest of the world. If we want to be like Europe as it is now, then we should just surrender our entire history — all that makes this nation an individual and intrinsically "revolutionary" example of government and atmosphere for development. The first step is the system of Health Care that mimics Britain and Canada. The next step is the sort of taxation that mitigates the income of Canadiens and Britons.

      What government, in their right mind, would suppose a higher tax in the midst of years of economic upheaval? What government would choose to inflict such a cost upon its citizens? It is almost pharoahical, as if out of the Old Testament.

      For those on the Left, I support the distribution of wealth, as long as it is not seized overtly, but conscientously distributed as an act of good will and philantropy. A tax of any sort is not that. A tax of this sort is the antithesis of this. A Value Added Tax will certainly cause me to consider this nation an equivalent of Europe, and then we might as well burn our history books — not because the nation has developed ideologically with the rest of the world, but because it has ceased to question that advancement, and resolved itself to become another of the isles drifting in a sea of madness and mediocrity.

    4. Pingback: Obama’s VAT Openness: An Economic Disaster In The Making | Caffeinated Thoughts

    5. Donna, Kentucky says:

      All I have to say about this "VAT" tax is that if we don't stop it now, it won't stop with just a VAT TAX!

      I think they should make the "government" smaller and that would save us all a lot of money to put back in the coffers.

    6. Kathleen says:

      I think BO should step down. He's incompetent and continues to LIE to "We the People". The current administration is RUINING our beloved U.S.A. Shame on him AND them!

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