Obama Calls for a VAT
Curtis Dubay /
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.