Krauthammer: The VAT Cometh

http://www.futureofcapitalism.com/2010/03/krauthammer-the-vat-cometh

Charles Krauthammer, in a new column, reports that the value-added or consumption tax we have been warning about here is on the way:

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.

As a substitute for the income tax, the VAT would be a splendid idea. Taxing consumption makes infinitely more sense than taxing work. But to feed the liberal social-democratic project, the VAT must be added on top of the income tax.

by Ira Stoll  |  Mar 26, 2010 at 7:05 am Related Topics:  Health Care, Politics, President Obama, Press, Taxes receive the latest by email: subscribe to the free futureofcapitalism.com mailing list