I’ve mentioned before that the Democrats were laying the groundwork for a European style Value Added Tax or VAT… I wish I could tell you I was wrong but House Speaker Nancy Pelosi confirmed that a VAT tax is “on the table” during an appearance on the Charlie Rose show Monday night:
A new value-added tax (VAT) is “on the table” to help the U.S. address its fiscal liabilities, House Speaker Nancy Pelosi (D-Calif.) said Monday night.
Pelosi, appearing on PBS’s “The Charlie Rose Show” asserted that “it’s fair to look at” the VAT as part of an overhaul of the nation’s tax code.
“I would say, Put everything on the table and subject it to the scrutiny that it deserves,” Pelosi told Rose when asked if the VAT has any appeal to her.
The VAT is a tax on manufacturers at each stage of production on the amount of value an additional producer adds to a product.
Pelosi argued that the VAT would level the playing field between U.S. and foreign manufacturers, the latter of which do not have pension and healthcare costs included in the price of their goods because their governments provide those services, financed by similar taxes.
The sad reality is the Federal Government now borrows roughly 50 cents of every dollar it spends, that’s simply unsustainable over the long term… The Obama Administration and Democrats in Congress are either going to have to radically scale back their agenda (something they won’t do) or raise taxes on broad swath of Americans… Something they’re only too happy to do while saying with a straight face “the deficit made us do it.”
Make no mistake a Value Added Tax added on top of our current income tax system will be an economy killer that hits those who can least afford it the the hardest.