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Monday, March 29, 2010

Coming Next: ObamaCare Likely to Result in Massive European-Style "Value Added Tax" (VAT) on Americans - Video


Here is Jonathan Hoenig, of "Capitalist Pig Investments" (Don't you love that name!), on Fox News where he explained the likelihood that Americans will eventually be hit with a "Value Added Tax" (VAT) in the near future to pay for the new ObamaCare Law.

A "Value Added Tax" is a "tax on everything you buy," and is already used in many European countries to pay for their massive socialized medicine programs.

Hoenig said, "Now that we have a European-style Health Care System in this country, we're going to end up with a European-style tax system to cover it, because the numbers, as you pointed out, simply don't add up. We're look at $8 Trillion in debt this year, $12 Trillion over the next decade, and the thought of many economists is that this VAT - which could raise $1 Trillion over the next decade - could be the only alternative the Administration has to actually pay for all these entitlements."

So, what kind of numbers are we talking about? Here are the VAT tax percentages in some of the European countries:

25% Scandinavia
20% France
20% Italy
19% Germany

Keep in mind that a VAT tax will be on top of already existing income taxes, not in place of them. Charles Krauthammer has written an outstanding op-ed on the near certainty that President Obama will soon pursue the Value Added Tax. He has already appointed a "Debt Commission" that is to report AFTER the November Midterm elections. If they recommend such a tax to reduce the debt, it could then give Obama cover to push the VAT. The VAT would be a regressive tax, hitting people of all income levels the same as a percentage of every purchase.

Krauthammer concludes that if Obama succeeds at imposing a Value Added Tax on the nation, he will have succeeded at utterly reversing "Reaganism," and turning the United States into a European-style "full entitlement state":

Obama set out to be a consequential president, on the order of Ronald Reagan. With the VAT, Obama's triumph will be complete. He will have succeeded in reversing Reaganism. Liberals have long complained that Reagan's strategy was to starve the (governmental) beast in order to shrink it: First, cut taxes -- then ultimately you have to reduce government spending.

Obama's strategy is exactly the opposite: Expand the beast and then feed it. Spend first -- which then forces taxation. Now that, with the institution of universal health care, we are becoming the full entitlement state, the beast will have to be fed.

And the VAT is the only trough in creation large enough. . . MORE

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