Back in May of this year this massive tax hike was broached by Sen. Kent Conrad (D-ND) and now Pelousi is talking about it. For those who don't understand what a VAT would mean, think of it as a widget that is going to be produced for the market. At every point in the making of that widget a tax is added to it's cost. Each hand that touches that widget adds taxes. If you want to add 20% to the cost of anything you buy then you'd love the Euro style VAT. By the way, this doesn't mean that ANY other taxes will be going away, it means the VAT will be in ADDITION to all the other taxes we pay.
Back in May I had posted on the new drive by the Democrats to shove a VAT down our throats:
There is nothing these Democrats controlling Congress and Obama will not do to kill the capitalist engine and destroy the US economy. To pay for all their wild spending and socialist mandates they finally have gone where they never dared to go in the past. A National Sales Tax or Value Added Tax (VAT).
Sen. Conrad broaching the VAT was just the opening salvo, now Pelousi is upping the ante.
From The Foundry:
Speaker Nancy Pelosi joined a growing liberal chorus calling for a massive tax hike through the implementation of a value added tax (VAT). A VAT is similar to a national sales tax. Businesses would pay it at each stage of the production process and consumers at the cash register. European countries have had VATs for years.
Francis Cianfrocca wrote about "Get Ready for the VAT" last May in Redstate:
My expectation was that Obama would wait till after the midterm election in November 2010, and then start sending out surrogates to float the idea of a VAT. After he himself was safely re-elected in 2012, he would come out and champion the idea himself and get it done.
It looks like we won’t have to wait that long. Already, the PR push has started. Eighteen months ahead of what I thought the schedule would be.
The push he's referring to comes from a Washington Post story which I referenced in my May posting:
latest move by Democrats and Obama to push this new hobbling and crippling of the economy.
At a White House conference earlier this year on the government’s budget problems, a roomful of tax experts pleaded with Treasury Secretary Timothy F. Geithner to consider a VAT. A recent flurry of books and papers on the subject is attracting genuine, if furtive, interest in Congress. And last month, after wrestling with the White House over the massive deficits projected under Obama’s policies, the chairman of the Senate Budget Committee declared that a VAT should be part of the debate.
“There is a growing awareness of the need for fundamental tax reform,” Sen. Kent Conrad (D-N.D.) said in an interview. “I think a VAT and a high-end income tax have got to be on the table.”
This is the plan folks, this will be what HAS to be done to save the country and it will need to be IMMEDIATELY. At least IMMEDIATELY after the Dems and Obama pass takeover of healthcare and the energy industry.
Cross posted at Bear Creek Ledger