Treasury Secretary Timothy Geithner also slid around Mr. Obama’s vow and said, “We have to bring these deficits down very dramatically. And that’s going to require some very hard choices.”
White House economist Larry Summers wouldn’t repeat Mr. Obama’s pre-election promise. “It is never a good idea to absolutely rule things out no matter what,”
Democrats already plan to repeal the Bush tax cuts, but that won’t raise enough money. So they’re proposing an income tax surcharge on “the wealthy,” but that won’t raise enough either. Democrats have no choice but to soak the middle class because only they have enough money to finance the liberal dream of yoking the middle class to cradle-to-grave government entitlements.
Democrats have already taxed the middle class by raising cigarette taxes to pay for the children’s health-care expansion. They’re also teeing up average earners with their cap-and-tax energy bill. Mr. Obama had hoped that cap-and-tax would raise some $646 billion over a decade, but Democrats in the House had to give most of that away in bribes to business to pass their bill. To finance ObamaCare, they’re also proposing another 10-percentage-point increase in the payroll tax on firms and individuals that don’t purchase health insurance. But this won’t raise enough money either.
So waiting in the wings is the biggest middle-class tax increase of them all: a European-style value added tax, or VAT. This tax would apply to every level of production or service, and it is beloved by politicians in Europe because it raises so much money so easily without voters noticing. Ezekiel Emanuel, a White House aide and brother of Chief of Staff Rahm Emanuel, has advocated a 10% VAT to finance national health care. Look for a VAT to be one of the prominent options when Mr. Obama’s tax reform commission issues its report later this year.
http://forum.houmatoday.com/viewtopic.p ... 243&p=1426
The VAT is a consumption tax that is placed on a product whenever value is added at a stage of production and at final sale. For example, as Investopedia.com explains, "When a television is built by a company in Europe the manufacturer is charged a VAT on all of the supplies they purchase for producing the television. Once the television reaches the shelf, the consumer who purchases it must pay the VAT that applies to him or her."
Now that health care reform has actually been passed by Congress, the options of stopping it are growing more and more limited. According to syndicated columnist Charles Krauthammer, this expensive unfunded liability won't likely be undone in the Supreme Court.
[...] Therefore, Krauthammer contends this liability will lead to the federal government instituting a VAT for the first time in the United States.
"But then I think there is a larger issue here," Krauthammer said. "I think ultimately Obama understands that he has just added an unbelievably large entitlement on to a country drowning in debt. He is not stupid. I think he is anticipated this, and I think he is, from the beginning, had a plan and the plan is he is going to use the Deficit Reduction Commission, which will report only after November, and I'm absolutely sure it will recommend something new in American history, a national sales tax which is called a VAT in Europe."
Cutting right to the chase, a VAT is nothing less than a broad-based tax hike on the middle class - despite Obama's promise of no new taxes on this group of Americans (a promise already broken with Obamacare), and if you're a betting man or woman, you can safely bet your bottom dollar that Krauthammer's right on target. Along with Obama being in the course of taking the U.S. to the equivalent of a European-style nanny state, his Deficit Reduction Commission will be used to push a VAT on the U.S.
http://www.hyscience.com/archives/2010/ ... a_have.php
























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