That was Ronald Reagan's comment every time he heard that the Democrats in power were preparing to raise taxes. Well, there they go again.
According to today's Wall Street Journal, Nancy Pelosi is thinking about a Value Added Tax (VAT) as a way to fund the spending proposals of the present Congress. John Podesta (an adviser to President Obama and president of the very liberal Center for American Progress)made a similar suggestion in September.
The article points out that nearly every European country that has national healthcare has eventually imposed a VAT to help pay for it. According to the article, a VAT applies to every level of production or service, rakes in piles of money, and is largely hidden from those who ultimately pay it--namely, consumers. It is essentially a hidden tax that can add as much as 10 percent to the eventual cost of all goods.
Remember President Obama's pledge not to raise taxes on anyone making less than $250,000 a year? This is a way to raise taxes on everyone and theoretically not have anyone notice. We'll see how that goes.
Leave a comment