The Tax Code is a monstrosity and there’s only one thing to do with it. Scrap it, kill it, drive a stake through its heart, bury it and hope it never rises again to terrorize the American people.” – Steve Forbes
Michael Barone | Hold the VAT — Takpayers May Prefer Spending Cuts
The Obama Democrats’ stealth strategy for increasing the size and scope of the federal government is well underway, despite huge voter backlash. Federal spending has been increased from a 30-year average of 21 percent of gross domestic product to 25 percent, and a bipartisan commission tasked with reducing the deficit may recommend tax increases.
Presidential economic adviser Paul Volcker has already called for a value-added tax, a form of national sales tax, and presidential press secretary Robert Gibbs has declined to rule it out.
The assumption in some quarters is that a tax increase is inevitable and that the public won’t allow any significant decrease in public spending. But there’s reason to question that assumption.