Given the enormous deficit facing America and the Administration’s calls for additional revenue, Grover Norquist sent the following letter to President Obama asking him to clarify his position on the VAT tax.
Dear President Obama:
During your campaign for President and up until the present day, you have consistently reiterated a promise to the American people: you will not raise “any form” of taxes on families and small businesses making less than $250,000 per year.
You broke this promise by signing your healthcare reform legislation. Seven of the nineteen new taxes or tax hikes in that law fall directly on working families. The rest will be passed along to middle-income households in the form of higher prices and lower wages.
Now, it seems that administration surrogates have been laying the groundwork for a European-style value-added tax (VAT). Just this month, your tax commission chairman, Paul Volcker, said that the VAT is “not as toxic an idea” as it has been in the past. Deficit reduction commission member Alice Rivlin (a longtime VAT sympathizer) said, “we have to take action on the revenue side as well.”
Since a VAT is a type of sales tax, it would clearly be imposed on all Americans—not just those making more than $250,000.
You need to make it clear to taxpayers if you believe in your promise not to raise taxes on families making less than $250,000. You clearly didn’t follow through with this promise when it came to healthcare reform. Will you again break it by imposing a VAT, or will you rule out a VAT as inconsistent with your campaign pledge?