Sounds like our very own EU VAT coming to the U. S. of A. How lucky we are that the usual common sense of Congress and the President is kicking in!  When the economy is recessed and there is the possibility it could get worse with an impending bond implosion or inflation in the coming months, why not raise taxes on everyone?

I know that liberals see this as a great idea.  They can raise taxes on all those evil fat-cats, actually wind up hurting the middle and lower class, all to pay for their own fiscally irresponsible habits.

As lawmakers toy with the idea of an across-the-board sales tax on just about everything, tax reform advocates are starting to drum up opposition with the same fervor they employed during last month’s anti-tax tea parties.

The idea of a national sales tax was once unlikely. But now that the federal government is doling out billions in stimulus spending and bailouts, and looking for billions more for health care reform, the prospect could be gaining some traction.

The frenzy over the idea kicked up after a Washington Post article Wednesday reported that Congress is starting to pay closer attention to this largely academic proposal and that the Obama administration, though shushing speculation, is soliciting advise from supporters of the idea.

“It should certainly raise alarm bells that they think they can inject it into the debate,” said Phil Kerpen, policy director at Americans for Prosperity.

The value-added tax, or VAT, as it is called, amounts to a tax-on-everything — or TOE, for the acronym-inclined. It’s a tax on goods that’s applied in pieces throughout the chain of production and distribution and results in an increase in the cost of virtually everything you buy.

The fact that the United States has dug its own hole regarding our debt where Bush and Obama combined can be blamed for a lot of it (I should also state that the liberal congress who has been there since the end of 2006 is also a huge culprit when it comes to voting on and setting budgets).  The National Debt is around $11.3T and growing at a steady pace, while the GDP is somewhere between $13 & $14T, seeing negative growth and possible stagnation in the out years.  This spells disaster for anyone in financial analysis, who understands debt ratios.

Inflation at this point is inevitable and that will mean higher prices for every American.  Each individual household is also responsible for $668,621 based on the latest article out of USA Today.  This obligation includes the total federal debt obligations per household as well as the average debt obligation for an American household at a personal level.  My question is this:  With median household income below $60K in the U.S. (if debt was all your income was used on – no taxes, no food, gas, clothes, shelter etc.),  – do you think Americans would be able to pay that off in their lifetime?  Buhbye American Dream…

The sad fact is that Americans became spoiled – the government was not a good role model, and the sense of saving and living within one’s means quickly flew out the window.

What USA Today, because it’s biased, fails to do is disclose the fact that 2008 alone cannot be blamed for the debt obligations of American citizens tied to the government like serfs.  The Stimulus package, the omnibus package and the budget of Barack H. Obama has increased deficit spending unlike anything this country has seen and his debt obligation alone is more than all presidents in history combined.  His out year budgets are also something to shriek at – he did not have to spend this much money, although the liberal propagandists will spin it and continue to say it was a crisis and he had to do what was necessary because he inherited this mess – I call Shenanigans!  Use Reagan’s model to dig out of a recession/depression – not FDR’s fallacious one, in which he hurt rather than helped.

It should be no surprise to anyone that in order to balance the budget and pay off this debt, taxes have to be raised.  Taxes have to increase to sustain the ever increasing size of government and due to the large drop in tax revenue for 2008 filing it really was an inevitable idea of the beltway gang.

Raising taxes while people are already hurting will make things much worse.  This proposal of a sales tax, much like the EU VAT, will be dreadful on our economy and on average regular “Joe’s.”

Rasmussen just conducted a poll asking Americans what they thought about a national sales tax at this point in time.  A whopping 68% of respondents were against the tax and only 18% approved.  If the White House is really using polling data to govern it may want to take a look at this one!

If the U.S. VAT passes I’ll be happy to point out to the young college-aged waiters that they no longer get tips – just like Europe! You voted for it!

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