President Barack Obama suggested Wednesday that a new value-added tax on Americans is still on the table, seeming to show more openness to the idea than his aides have expressed in recent days.Baloney. A VAT tax has been an option since day one, the only question was how to sell it to Congress.
Before deciding what revenue options are best for dealing with the deficit and the economy, Obama said in an interview with CNBC, "I want to get a better picture of what our options are."
After Obama adviser Paul Volcker recently raised the prospect of a value-added tax, or VAT, the Senate voted 85-13 last week for a nonbinding "sense of the Senate" resolution that calls the such a tax "a massive tax increase that will cripple families on fixed income and only further push back America's economic recovery."
For days, White House spokesmen have said the president has not proposed and is not considering a VAT.
"I think I directly answered this the other day by saying that it wasn't something that the president had under consideration," White House press secretary Robert Gibbs told reporters shortly before Obama spoke with CNBC.
After the interview, White House deputy communications director Jen Psaki said nothing has changed and the White House is "not considering" a VAT.
Of course, with reconciliation now the plan for all controversial bills he only has to sell it to Democrats and that won't be that hard.
1 comment:
Actually, the poor will not be hit as hard by VAT. They will continue to shop at WALMART choosing from myriad products manufactured outside the US. The real hit will be US jobs as the remaining manufacturing industry will face punitive pricing relative to foreign products. It is clear that with the imposition of VAT as much as possible of industrial output will become imports.
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