Charles Krauthammer had an(ohter) excellent column in the March 26, 2010, edition of The Washington Post . He predicts that President Obama will create a national sales tax in the form of the invisible Value Added Tax in order to offset the downward spiral of the economy spurred by the largest entitlement program in the US in over 40 years.

Because of the tremendous debt the government has created, the VAT won't be a substitute for the income tax, but an addition.

"Obama knows that the debt bomb is looming, that Moody's is warning that the Treasury's AAA rating is in jeopardy, that we are headed for a run on the dollar and/or hyperinflation if nothing is done.

"Hence his deficit-reduction commission. It will report (surprise!) after the November elections," Krauthammer said.

"What will it recommend? What can it recommend? Sure, Social Security can be trimmed by raising the retirement age, introducing means testing and changing the indexing formula from wage growth to price inflation. But this won't be nearly enough. As Obama has repeatedly insisted, the real money is in health-care costs -- which are locked in place by the new Obamacare mandates.

"That's where the value-added tax comes in."

Before you stand up and applaud this form of taxation, take the time to read about the European tax. Imagine it in addition to our current income tax. God help us.



http://www.washingtonpost.com/wp-dyn...T2010032603755

They are more likely to call it a fee of some kind, hence allowing for the bragging rights of not having raised taxes. This is definitely the way they think in Washington....lawyers.....a fee is not a tax. And unfortunately they really believe what they say because it meets the "letter of the law". Lawyers either use the law to define an issue on their terms or hide behind an issue without saying a word.

ANd none that they do has anything to do with the needs of the people.

btk

"Starve the beast---keep your money"

"The bigger the government, the smaller the citizen."

Not only is the value added tax coming next, it will be followed by the cap and tax program (liberals like to refer to this as the cap and trade program). Then all the illegals will get their citizenship. Yup... hope and change!

Originally Posted by Ooper

Not only is the value added tax coming next, it will be followed by the cap and tax program (liberals like to refer to this as the cap and trade program). Then all the illegals will get their citizenship. Yup... hope and change!

I just hope that this administration doesn't do too much damage before November.


"Starve the Beast"

As I've posted here many times before, some means for increasing federal revenue is inevitable. The growing size of the annual deficits adding to our national debt cannot be solved with spending reductions alone. Look at the budget and do the math. We can complain all we wish, but before it's all over there will have to be huge spending cuts as well as some means of significantly increasing revenues. We might as well call that what it is--big tax increases.

Our unwillingness to live within our means as well as hold our elected representatives to task got us here. Now bigtime spending cuts and new taxes are the only solutions.

Do the math and pay attention to how well our debt is selling. Last week's auction was a disaster. Watch first for escalating inflation as our politicians authorize printing a lot more money. All they're hoping to do is get elected before the music stops and we all discover that there are way too few chairs.

Well, most of the corporations an the USA sent the jobs overseas. They downsized. Government needs to downsize as well.

"Starve the Beast"

programs for which there are no funds visible...like the recent health care ram job?
Just how long would ANY business or private individual last if their spending and debt accumulation was done like our representatives () in Washington?

Not long because of all the legal trip wires that are in place to prohibit such irresponsibility holding us ACCOUNTABLE (another foreign concept to those in Washington).

What is wrong with not allowing any laws that rely on spending of funds not available?

btk

How many businesses would add hundreds of thousands of jobs to their payroll if they were deep in the red? How could the government keep adding employees when it is going bankrupt?


"Starve the Beast"