Didn't then-candidate Barack Obama promise that "95% of Americans will get a tax cut?"
Well, something wicked this way comes ... the Mother of All Tax Increases.
"It is no exaggeration to say that the VAT is the biggest fiscal
threat to the cause of limited government." - Daniel J. Mitchell
Does President Obama have a secret plan to raise taxes on middle-class Americans — and,well, pretty much everybody else — with a European-style, value-added tax? Actually, it’s not such a big secret. Connect the dots:
1) The joint statement from the just-concluded G20 Summit in Pittsburgh called for balanced global growth — which means Americans must spend less and save more and reduce its budget deficit.
2) That same weekend, John Podesta, co-chairman of Obama’s presidential transition team and an outside White House adviser, tells a Bloomberg reporter that a value-added tax is “more plausible today” than ever ...
3) Yesterday, the Center for American Progress, the liberal think tank with close White House ties, holds a conference on the rising national debt. While speaker after speaker — Paul Krugman, Roger Altman, CAP President Podesta (again), Laura Tyson — admits entitlement spending must be reduced, they also agree that taxes must be raised ...
4) Also, yesterday was the first meeting of President Obama’s tax reform panel led by former Federal Reserve Chairman Paul Volcker ... [who] says that if Washington can’t get spending under control, either a VAT or a carbon tax would be effective revenue raisers ...
5) As they used to say in the Soviet Union, “It’s no coincidence" ... Of course, it’s a trial balloon. And I expect the administration will propose major tax reform, including a VAT.”
Since being elected, Obama has raised cigarette taxes and has advocated raising healthcare taxes, energy and small business taxes, in addition to corporate taxes. What’s more, economic advisers like Larry Summers seem eager to get rid of all the Bush tax cuts, not just those on so-called wealthy Americans.
From The Obama Experiment, "'Dictionary' on President Obama’s Health Care Taxes"
While the timing is unclear, his prediction is correct. The politicians in Washington want much bigger government, but they know that it will be difficult to achieve that goal without a big new source of revenue. The VAT would be perfect from their perspective. It is a form of national sales tax, but would be hidden in the price of products and therefore easy to increase. Moreover, every time they increase the VAT, they would use that as an excuse to raise income tax rates for “distributional fairness.” It is no exaggeration to say that the VAT is the biggest fiscal threat to the cause of limited government.
So President Obama and the Democrats want to slap a big fat tax on every person in the country. Now. In this economy.
I'm sorry but in situations like this, there are no "unintended consequences." Nope. Not at that level of government. And I'm tired of giving these people the benefit of the doubt.
First, they push for "Cap and Trade," then they attempt to force nationalized health care down our throats ... and now they're hyping the Mother of All Taxes? VAT?
President Obama is a smart guy. His advisors and cohorts and the rest of the Democratic Party all know what they're doing.
Destroying the "capitalist" economy.