Did You Want More Spending with VAT?

Conn Carroll / October 14, 2009

P.J. O’Rourke once quipped about spending in Washington: “The budget grows because, like zygotes and suburban lawns, it was designed to do nothing else.” To help pay for their addiction to more spending, the left is now calling for a value-added tax or VAT.

Cato Senior Fellow Dan Mitchell, in conjunction with the Center for Freedom and Prosperity Foundation, has produced a video conclusively showing that the VAT will do nothing to stop deficits since governments that have adopted VATs have a proven track record of only raising spending even further after they pass. Watch:

[youtube]http://www.youtube.com/watch?v=b6JDpw8a2Hk[/youtube] (more…)