Value Added Tax (VAT) -What Are the Prospects?

The Value Added Tax (VAT) like in Europe is essentially a consumption tax attached to the price of everything you buy. In Europe it is 15% or higher and despite promises by politicians, income taxes have not been reduced by the VAT. Lying politicians? What a surprise! One of Obama's economic advisors has floated the idea that a VAT in the United States is the only way to combat the growing debt. Naturally, ideas like cutting spending, even for entitlement programs, and cutting taxes to grow the economy and thus increase tax revenues don't occur in the minds of the leftists in the Obama administration. Many of Obama's actions and statements reveal that he wants to create a socialistic economy of the European style or worse.


A VAT would push the United States well down the path to socialism. The one bright spot is that if Obama and Democrats passed a VAT, it might be the best way to wake up those puppets still fawning over Obama. It would be painful for all, until repealed, but all other hidden taxes, fees, health insurance premium increases, eventual impact of inflation, ObamaCare forcing states to increase taxes to cover Medicaid adds and so on are subject to demagoguery by Obama; it will always be someone else's fault. However, a VAT, is "in your face" and even those that don't pay income taxes will get hit by a VAT. Obama and the Democrats know this will hit many of their base, so they will probably hold off until after 2010 and even after 2012, before trying to pass a VAT. This is one more reason why it is so important to take Congress away from the control of the leftists in 2010 and 2012 and to defeat Obama in 2012