President Obama has started to say that a European-style VAT (Value-Added Tax) might be an option for the U.S. in order to address the deficit that his party's Congress and the monstrosity of a health-care bill created. In case you doubt me, here is the story.
My immediate reaction to this idea is an overwhelming "NO!" I generally oppose increasing taxes as a matter of principal. It is generally better for the economy to have low tax rates. Business seek those areas that have low tax rates (among other things) and tend to function better in those environments. So, a VAT, which would impose multiple levels of taxation on every level of the economy (and be hidden, since it would already be included in the price), would effectively hurt business while also stifling the spending power of the American consumer.
This suggestion to me shows how out of touch this Administration is with the American people. The majority did not want a debt-ballooning social medicine program. But the Democrats arrogantly said, "Too bad, we know better than you, so there." Now, on top of passing a bill we don't want, the Democrats are floating the idea of a tax that we don't want to pay for a social medicine program that we don't want.
And the Democrats wonder why there is such voter backlash....
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