Another potential gift from the Obama Administration is coming for the American public. It’s called the Value Added Tax.
It’s something that not only every college student should be aware of, but also every American consumer.
The federal government is starting to seem more and more like a pubescent teen who receives his/her paycheck from work only to subconsciously spend it on things he/she doesn’t realize he/she doesn’t need.
Now, the government is slightly concerned, wondering how it’s going to pay for all of this. So it turns to the easy solution—the people.
It’s fact: rather than admit their own mistake for spending trillions of dollars, the federal government will make you, the taxpayer, pay for their senseless spending. Literally.
Paul Volcker, senior economic adviser to Pres. Obama said we need to raise taxes in order to bring deficits under control. He proposed the European-style “Value Added Tax,” or VAT.
In addition, the tax, used in 100 countries around the world, is essentially a sales tax. However, it is a tax collected at every stage of production.
Now, Volcker was the Federal Reserve Chairman under Ronald Reagan who successfully beat down inflation during that administration. Still, why is he saying the VAT wouldn’t be a “toxic idea”?
There is no way that the people of America can sit back and be alright with the fact that this tax will touch every transaction made.
Bruce Bartlett, a former Reagan economic adviser, states that the “U.S. needs a money machine” because by the end of the year, the Office of Management and Budget estimates the gross federal debt to be at $13.8 trillion.
The administration is seeing this as a real way to rake in money. They just think they can put it on the American people and leave it up to them to pay for their reckless spending. It seems to me the economy will just suffer more. Why?
Because people won’t be making as many transactions as before, now that they know their extra tax is going straight to the federal government to pay for a problem they didn’t cause in the first place.