Monday, March 29, 2010

The Vat cometh-Prepare for a big new tax.

This article was in the Review Journal, but I couldn't find a link to it on the RJ web site so I used this link.

Basically this article outlines the upcoming expenses that will cause a bigger deficit and how the vat tax will be added on top on income tax to raise revenue.

It states that
With the passage of Obamacare, creating a vast new middle-class entitlement, a national sales tax of the kind near-universal in Europe is inevitable.

Hence his(Obama's) deficit reduction commission. It will report (surprise!) after the November elections.

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 now locked in place by the new Obamacare mandates.

That's where the value-added tax comes in. For the politician, it has the virtue of expediency: People are used to sales taxes, and this one produces a river of revenue.

It is time for a new revolution. It is time to vote out both parties. They both increase taxes and spend your money. They just spend it on different things.

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