According to TheHill.com:
A new value-added tax (VAT) is "on the table" to help the U.S. address its fiscal liabilities, House Speaker Nancy Pelosi (D-Calif.) said Monday night. Pelosi, appearing on PBS's "The Charlie Rose Show" asserted that "it's fair to look at" the VAT as part of an overhaul of the nation's tax code. "I would say, Put everything on the table and subject it to the scrutiny that it deserves," Pelosi told Rose when asked if the VAT has any appeal to her.
The big dream for those favoring big government getting much bigger is to impose a VAT – a tax that is imposed on the value added at each stage of production – along side an income tax. The income tax and the VAT serve as high-octane fuel for growing government. The great danger in a VAT is that it is hidden from consumers and individual taxpayers, making it a very easy tax to impose and increase.
The Pelosi VAT dream, of course, would wreak havoc on U.S. businesses, consumers and economy.
Congress should be looking for ways to provide pro-growth tax relief that will spur entrepreneurship, investment, economic growth, and job creation. Instead, though, the House speaker is dreaming up ways to do more economic damage.
Raymond J. Keating
Chief Economist
Small Business & Entrepreneurship Council
2 comments:
First, Pelosi's comments you cited aren't as enthusiatic an endorsement of the VAT as you frame them to be. President Obama has used the same, admittedly noncommital language when referring to Guantanamo Bay and Don't Ask, Don't Tell.
Second, thanks to the cronyism of Wall Street over the past decade that led to the financial crisis we're in, unfortunately solutions to improve our infrastructure and commerce moving forward are going to have to involve some sacrifice from everyone. That will undoubtedly mean higher taxes on businesses as well as individuals.
Higher taxes on VAT should not be entertained. That will severely effect the global economy.
www.msoft-technologies.com
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