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The White House is using Paul Volcker to float yet another new tax.  This time a Value Added Tax.  To get an idea of what life with a VAT is like, see this article: http://online.wsj.com/article/SB100...52357241946.html?mod=rss_Today's_Most_Popular

Now for the trial balloon -
http://www.reuters.com/article/idUSTRE6355N520100406

- The United States should consider raising taxes to help bring deficits under control and may need to consider a European-style value-added tax, White House adviser Paul Volcker said on Tuesday.

Volcker, answering a question from the audience at a New York Historical Society event, said the value-added tax "was not as toxic an idea" as it has been in the past and also said a carbon or other energy-related tax may become necessary.

Though he acknowledged that both were still unpopular ideas, he said getting entitlement costs and the U.S. budget deficit under control may require such moves. "If at the end of the day we need to raise taxes, we should raise taxes," he said.
 
Led Zeppelin seems to have done pretty well...

But that point aside, what is important is that it shows the mindset of the administration.  Prior to Obama, Federal spending was about 19% of GDP.  In only 15 painful months, Federal spending has risen to 26% of GDP.  Keynesian Economists would tell you that when consumer and business spending goes down during a recession, government spending should be increased to offset the impact of reductions elsewhere in the economy.  But if you look at the budget numbers Obama has submitted to the CBO, they are calling for a new higher plateau of Federal government influence over our lives.  (That's change you can believe in)

So whether it's a VAT, higher income taxes, a Cap and Tax strategy on energy consumption, or any combination of the three, you can count on a reduced standard of living in the future.


A government big enough to supply you with everything you need, is a government big enough to take away everything that you have - Gerald Ford
 
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