I’ve used this video in a couple of my other posts, but it bears showing again here. After all, it’s one of my favs, Obama on taxes. More specifically, on NOT raising your taxes:
“I will make a firm pledge. Under my plan. No family making less than $250K a year will see any form of tax increase. Not your income tax. Not your payroll tax, not your capital gains tax, not any of your tax.”
Bwahahaha! We’ve already seen $670 billion in new taxes since he took office. And now there has been “talk” bandied around by the White House about imposing a VAT, or Value Added Tax on this country.
A Value Added Tax is a tax on certain aspects of business, which would translate into a higher cost for the consumer. It is a tax actually “hidden” in the manufacturing process by the government. Really a national sales tax. If a 5% VAT was added on manufacturers, this would make that $2,000 TV cost $2,100. That $30,000 car cost $31,500. And they think we won’t notice. This is the type of tax that has been imposed on many European countries and has been a disaster. Here is a video from the Cato Institute explaining this tax in layman’s terms:
The White House has been dancing around this subject. One minute they say it’s been discussed, another minute they say it hasn’t. However, let’s look at the facts. On 4/22/10 according to The Hill we have Tax-Cheat-in-Chief Geithner saying:
President Barack Obama does not support implementing a value-added tax (VAT) in the United States, Treasury Secretary Tim Geithner said Thursday.
Here is Obama and his comments about the tax, 4/21/10:
But then take a look at this article from the New York Times Caucus on 4/18/10:
But since any Social Security plan would probably preserve benefits for those nearing retirement, it would not help the administration achieve its goal of reducing the deficit to 3 percent of gross domestic product, from 10 percent, within a decade.
One way to reach that 3 percent goal, by the calculations of Mr. Obama’s economic team: [emphasis mine] a 5 percent value-added tax, which would generate enough revenue to simultaneously permit the reduction in corporate tax rates Republicans favor.
And according to Fox News Online the Executive Director of the commission charged with lowering the debt, Bruce Reed, stated nothing has been ruled out. Including the VAT tax. The commission is to begin its research tomorrow. And Cato for Liberty tells us:
Some fiscal experts think that a VAT would solve the government’s budget problems and reduce the deficit, as the Washington Post noted yesterday. That certainly has not happened in Europe where the average VAT rate is a huge 20 percent, and most nations face large budget deficits just as we do. The hard truth for policymakers to swallow is that the only real cure for our federal fiscal crisis is to cut spending. [sic] In sum, a VAT would not solve our deficit problems because Congress would simply boost its spending even higher, as happened in Europe as VAT rates increased over time.
Republican House Minority Leader John Boehner (OH) notes these troubling items about a VAT:
- The VAT would take thousands from every household.
- The VAT is a job-killer that could “slow the economy” at the worst possible time.
- The VAT is a hidden tax, which makes it even easier to increase.
- The VAT typically rises over time.
At a time when Americans are hurting financially and unemployment is high, we don’t need another tax, Mr. Obama. Even though you claim you haven’t raised them. Wouldn’t it be ironic if the same words that killed George Bush #41’s re-election killed Obama’s too?
READ MY LIPS. NO NEW TAXES!