re: #674 Fat Bastard Vegetarian

I am debating something that will add 7% to 20% to the price of goods that Americans buy. I am fine with the raising of my income taxes, really, I am.

But let’s go to the corner supermarket and watch a struggling single mother buy a Value Added gallon of milk. VAT will not reduce the amount of milk she will need to buy, it will only reduce the amount she is able to buy.

Here’s my take on it….
Volker mentioned VAT because he’s an economist. VAT does work and is used in a lot of countries. Unlike thing like Fair Tax it’s an idea that works in the real world. Another reason an economist might like VAT is because is does away with all those pesky tax “complications” (AKA writeoffs) like mortgage interest, healthcare costs, buisiness expenses. Ultimately it raises more money for the government and that’s what an economist would like.

Obama is a politician and he has to run again in a few years. A massive tax hike like VAT would hit small business, working poor and middle class families very hard. If he even seriously pushes the idea he will really hurt his chances of getting reelected. He’s not going to go for it. Even if people think he might push for VAT down the road it will really hurt him.