Hot Air is pointing out several recent stories that seem to indicate we may face a VAT fight soon. The New York Times and Nancy Pelosi are pushing for it, Charles Krauthammer and the CATO Institute warn we could face this fight very soon. The Value Added Tax acts as a stealth sales tax, only it hits the economy at every step of the supply chain. It’s popular in Europe, where it funds the massive, cradle-to-grave welfare state which, in case you’ve been high the last couple years, we are edging ever closer to.
“Krauthammer’s right; as soon as the predicted budget surpluses turn into huge deficits, Democrats will try to stem the tide not by undoing ObamaCare but by imposing onerous consumption taxes on Americans. That will slow the economy, which will make the ObamaCare deficits even worse, and will continue a cycle of stagnation.”
I expect the Democrats to push for this as a serious policy goal as our unsustainable deficits actually threaten our credit rating and we become unable to repay our debts.