Feds look at VAT tax, ignore need to trim fiscal obesity
Wednesday, May 27, 2009 at 10:13AM
Sen. Jim DeMint (R-S.C.) called the Recovery Bill a 'Three Trillion Dollar Mistake.' [Photo from US Senate pages.]We’ve heard rumors for awhile and an article in The Washington Post seems to confirm the federal government is looking at a value-added tax to trim the fiscally obese US deficit. WaPo declares the obvious—a VAT tax “would increase the cost of just about everything.”
If the government were to dismantle the current tax system, a tax on goods could be more palatable. But some legislators like Sen. Kent Conrad (D-N.D.) want the VAT tax AND a tax on “high-end” incomes. The problem with that sort of income tax is how the term “high-end” is defined and Washington tends to define wealth on smaller income ranges than most taxpayers. President Barack Obama frequently cites incomes above $200,000 as “wealthy,” but many of us believe that amount too small to confer real financial security. Included in the newspaper article as a targeted group are incomes above $100,000.






