A new and ugly phrase has recently made its way into the vernacular in this country: the Value Added Tax or VAT tax. But don’t let the term fool you. The “values” that accompany this legislative fungus are perverse and only “valuable” to the spending obsessed, socialist liberals who support them.
A VAT is a sales tax imposed on every level of a product's path from production to consumption. It already exists in Europe and many other struggling countries around the world. It’s a sneaky sucker, too, since it’s essentially built in ahead of time and doesn’t show up on a receipt like a sales tax would. If a VAT were in place that iPad you just bought would be $600 instead of $500.
A VAT would pull in massive revenues. Just think: a 10% VAT would produce 1 trillion in revenues. Cash register sounds go off in the minds of every leftist that hears it.
Obama and the Democrats are spending SO much that they’ll be forced to invoke a VAT. They are creating a crisis so that they can solve it with a mechanism that will serve as the catalyst for future spending on their massive government programs. And even though our president said he wouldn’t raise taxes on 95% of Americans while he was on the campaign trail, this move would raise taxes on everyone.
Here’s how it’ll go down. This week, we heard former Fed Chairman Paul Volker float the VAT trial balloon just this week in a speech at the New York Historical Society, saying it was "not a toxic idea." Then, on Thursday, current Federal Reserve Chairman Ben Bernake mentioned it in a speech -- but only after he said we are on an unsustainable course with our record high deficits.
When questioned thus far about a possible VAT for America the White House has been quiet, only mildly denying that it’s an imminent option. But doesn’t mean it won’t be under consideration in a few months.
What Obama will say is that he is putting together a commission to find a way to pay down our country’s maxed out credit card.
Expect that commission to recommend the VAT tax after the 2010 midterm elections. By then, we’ll be on the verge of Greece-like catastrophe and we’ll have no choice but to impose a VAT. But only one that will, coincidentally, go into effect after the 2012 presidential election.
Worse yet – a VAT tax will create a lobbyist feeding frenzy just like the sales tax did.
Right now, special interests across the country – that’s everyone from insurers to car makers to potato growers to soda companies -- are wondering if they’ll be exempt from the tax or included. Believe me, they’ll spend millions to ensure they aren’t. It’ll be a special interest circus. Just watch.
The Obama administration was supposed to keep lobbyists away from government, not lure them in with their socialist revenue raising tricks.
Further, we are a nation of consumers. It’s what we do best. Unlike Germany and Japan who rely largely on exports to run their economies, 70% of our economy is fueled by consumer-based spending. It would be insanity to punish American consumers with a tax that’s bound to impair that beacon of growth.
This is a sobering moment. Literally and figuratively. Not only does it mark the end to every reason our ancestors left their countries to seek a better life in a free and prosperous society, the good folks in Washington will also be taxing our liquor even more leaving us with nothing to numb the pain.
Andrea Tantaros is a FoxNews.com contributor and conservative columnist. Follow her on Twitter @andreatantaros.
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Andrea Tantaros currently serves as co-host of FOX News Channel's (FNC) The Five (weekdays 5-6PM/ET). She joined the network as a contributor in 2010.