The VAT continues to grow more and more likely to be considered as an option to fund the massive new Health Care Reform law. If Ohioans are to be fully informed, they need those in the media to find out where their representatives in Congress stand.
Today, when asked whether a European-style Value Added Tax is under consideration by the Obama administration, press secretary Robert Gibbs claimed:
This is not something the president has proposed, nor is it under consideration.
But not only has Obama advisor Paul Volcker indicated that a VAT is being considered, but The New York Times reports that the Obama’s economic team has already calculated how big of a VAT they’ll need in order to pay for their binge spending:
[S]ince any Social Security plan would probably preserve benefits for those nearing retirement, it would not help the administration achieve its goal of reducing the deficit to 3 percent of gross domestic product, from 10 percent, within a decade.
One way to reach that 3 percent goal, by the calculations of Mr. Obama’s economic team: a 5 percent value-added tax, which would generate enough revenue to simultaneously permit the reduction in corporate tax rates Republicans favor.
As we have noted before, a VAT is an incredibly regressive form of taxation that would fall hardest on those who can least afford it. Furthermore, it would be a clear violation of President Barack Obama’s promise not to raise taxes on those making under $250,000 a year.
Tuesday, April 20, 2010
Obama is talking out both sides of his mouth on the VAT...
From the RNC: