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Obama Floats VAT Tax
To Pay for Socialized Medicine

From Ryan Ellis on Wednesday, May 27, 2009 11:41 AM
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•    The Washington Post today reported that Democrats all over Washington and in the Obama White House are clamoring to include a value-added tax (VAT) to pay for a government-controlled national health insurance scheme.  The White House has even brought in Rahm Emanuel’s brother to consult on this.

•    This trial balloon is another attempt by President Obama to renege on his pledge to not raise taxes on any American making less than $250,000 per year—a promise he made repeatedly and forcefully on the campaign trail in 2008, and which he broke 16 days into his Administration

•    A VAT is a version of a national sales tax.  Any person who consumes pays this tax.  The poor and working class (and certainly those making less than $250,000 per year) consume more as a percentage of their income the less they make.  A VAT is among the most regressive tax schemes that can be imposed, and is a direct violation of Obama’s no-tax-hike promise

•    VATs are a gateway drug to more government spending.  When VATs first came on the scene in Western Europe in the 1960s, they were modest taxes averaging around 5 percent in rate.  In the years since, the rates have climbed to an average of 20 percent (with a 15 percent minimum to get into the European Union)

•    There are two reasons for this.  First, politicians are always tempted to hike the rate and exclude preferred items like food, medicine, and housing.  Second, because a VAT is embedded in the price of a good (unlike state sales taxes in the United States), most people are unaware of the tax or how high it is.  Raising the VAT rate becomes a relatively-painless political maneuver, especially if it’s linked to higher welfare spending or VAT base carve-outs

•    This VAT trial balloon betrays the mentality of the Pelosi-Reid-Obama thinking in Washington today.  Raise taxes, and raise federal spending.  Ultimately, they won’t be satisfied until federal taxes and federal spending are permanently at record levels.  A VAT is a good way to pay for bigger government, which is why the Europeans are so enamored with them

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Comments

I like your analysis of the VAT except for two points: 1) Since the policy of the Obama administration is identical in every important feature to the Bush administration (which brought us socialized medicine in the form of the medicare prescription drop program and unprecedented spending), why not point out that this is a bipartisan spending spree which has gone on for over 8 years now. 2) The phrase "gateway drug" has been forever discredited by being used to support the failed "war on drugs", better described as a "war on the bill of rights" or "Prohibition II". It should be retired, along with the aforementioned wasteful government policies. Don't blame me: I voted Libertarian.
>> Rich Wednesday, May 27, 2009 5:10 PM

1. I think President Obama only promised not to raise income taxes. He slide by w/ a 'I didn't say anything about VAT'. 2. ANY increase in prices is inflationary; the recovery is almost here. The absolute certain way to kill it (the recovery) is to raise taxes/prices. When will the Democrats ever learn.
>> vince Wednesday, May 27, 2009 5:30 PM

Vince...do your research...you don't have to go far (above second paragraph) President Obama said on September 12, 2008 in Dover, New Hampshire: “I can make a firm pledge. Under my plan, no family making less than $250,000 a year will see any form of tax increase. Not your income tax, not your payroll tax, not your capital gains taxes, not any of your taxes.”
>> Jan Wednesday, May 27, 2009 5:44 PM

We are all in the gravy train to the soup line. Thank you Obama
>> Tom Wednesday, May 27, 2009 6:06 PM

Mr. Obama wants to hike any taxes he can, and then say to the American people, these taxes are lowering your medical care costs, your energy costs, your education costs, your car costs, etc. You get the message. Subliminal messages that the uneducated and unaware will not be able to interpret as actual tax hikes on their goods, until they see that the check they used to get continues to shrink and shrink, and costs of goods are higher and higher.
>> Irene Wednesday, May 27, 2009 8:35 PM

What a joke. How about looking at the fair tax that would solve every problem we're facing today?
>> Jason Thursday, May 28, 2009 2:37 PM

Just wait til we're called racist for opposing the VAT.
>> Curt Thursday, May 28, 2009 3:44 PM

Obama Lied and still is. Everyone will see.
>> Jan Sunday, June 7, 2009 12:53 AM

i hate to break it to everyone, but no matter whos in office, were getting taxed..
>> Beatrice Thursday, June 11, 2009 12:40 PM

The power to tax is the power to destroy! The SHEEPLE go along with all the politicians' promises of "free stuff from the government" - in exchange for being enslaved/controlled by the government. These SHEEPLE are the result of years of government-run education and they get all their news from "Entertainment Tonight", "American Idol", "Rolling Stone", and "The Daily Show". GIVE US bread and circuses! The power-hungry politicians are more than happy to comply (why not - they're spending "somebody else's" money), as the SHEEPLE give away more of their freedoms. The power to tax is the power to destroy.
>> DaveH Wednesday, July 1, 2009 11:17 AM

This is America's first President that needs other people to tell him what to do. They also tell him what to say, Not one of his so called town meetings has had a question ask of him that wasn't prepared a head of time. His love of Dictators and his desire to insult our allies. I can only conclude that he is a coward, sneak, and devious liar.
>> Sarahs Side Kick Friday, July 3, 2009 9:14 AM

Once a Liar always a Liar. Sad to think alot of people like Liars!! He has not spoke any truth since being in office. I would love to know how much money he has gotton his dirty hands on. Maybe it is hidden in Kenya. He is Black when needed to be Black, White when neeeded to be White and Muslum when needed! ETC< ETC< ETC Wake up people of America This is not Africa or is it!!
>> Rhonda N Wednesday, July 29, 2009 10:21 PM

The more he pushes, the more Americans will push back!
>> Joe Friday, October 2, 2009 1:37 PM

I wonder what all of the Acorn supporters think about paying higher taxes so us middle class folks don't have to pay as much. His voters gotta pay these taxes to, along with the Cap and Trade, The climate tax, the medical device tax that means you pay tax on sexual aids, tampons, rubbers, anything that is used to dispense aid your health. Go gett'em you Obama voters......
>> Sarahs Side Kick Friday, October 2, 2009 4:15 PM

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