BrianGarst.com

Volcker suggests a European-style VAT (and why not, since we’ve already got a European-style, unsustainable welfare state):

The United States should consider raising taxes to help bring deficits under control and may need to consider a European-style value-added tax, White House adviser Paul Volcker said on Tuesday.

Volcker, answering a question from the audience at a New York Historical Society event, said the value-added tax “was not as toxic an idea” as it has been in the past and also said a carbon or other energy-related tax may become necessary.

Though he acknowledged that both were still unpopular ideas, he said getting entitlement costs and the U.S. budget deficit under control may require such moves. “If at the end of the day we need to raise taxes, we should raise taxes,” he said.

Something you will never hear anyone in the Obama regime say: “If at the end of the day we need to cut spending, we should cut spending.”

I preempted Volcker and explained why a VAT won’t eliminate budget deficits over 3 months ago.  Dan Mitchell has also been beating this horse for a while now.

budget deficit VAT