Rush Limbaugh: Two weeks ago, former Federal Reserve Board Chairman Paul Volker said that politicians may have to consider the Value Added Tax as a way to deal with Obama's massive deficits. He claimed the tax wasn't as "toxic" an idea as it has been in the past.
Maverick John McCain, fighting for his political life, quickly proposed a Senate resolution denouncing the VAT as a tax that would cripple families and hurt the economy. Eighty-five senators voted for the symbolic resolution. Meanwhile, the Wall Street Journal praised Volker for admitting what Democrats know but are avoiding until after the election, that the groundwork is being laid to push for the "European-style value added tax."
The White House reaction came from official mouthpiece Robert Gibbs, who said Obama never proposed the idea – "nor is it under consideration."
Recently the Washington Post ran two articles on this. The first reported that Obama's economic team has calculated that a five percent VAT would generate enough revenue to help bring down the deficit. The second article quotes noted economists complaining that the "hyper-partisan political atmosphere" is "narrowing the options" for dealing with the deficit. The economists agree VAT should be on the table – and behind closed doors all the serious players understand this.
Never mind what Obama or the State-Controlled Media says. If Democrats are in charge, higher taxes are coming. Whether it's the VAT or some other tax. Folks, these are Democrats, and tax increases are in their DNA.
Read the Background Material on the Morning Update...
• Wall Street Journal: The Toxic VAT