The Obama Administration Considers a National Sales Tax

 Note: For the latest news on this issue please read this post from 08/07.

  There are some people in this administration that seem to be warming up to the idea of imposing a national sales tax on the American people to help us pay for the president’s “free” health-care plan. While it does seem to be a long shot at this point the idea is gaining momentum within the administration.

There is a growing awareness of the need for fundamental tax reform,” Sen. Kent Conrad (D-N.D.) said in an interview. “I think a VAT and a high-end income tax have got to be on the table

  Unfortunately Senator Conrad is not alone, Budget Director Peter Orszag has hired an advocate for a 10% national sales tax to help advise him on health-care. The man that he hired just happens to be Rahm Emanuel’s brother.

Orszag has hired a prominent VAT advocate to advise him on health care: Ezekiel Emanuel, brother of White House chief of staff Rahm Emanuel and author of the 2008 book “Health Care, Guaranteed.

   And if you still don’t believe that this idea is gaining momentum the president has hired Paul  Volcker, also a sales tax advocate, as the chairman of the task force that is studying the tax code.

Paul A. Volcker, chairman of a task force Obama assigned to study the tax system, has expressed at least tentative support for a VAT.

    And still, here is what a director of the Tax Policy Center had to say about fleecing the American people every time they make a purchase.

Everybody who understands our long-term budget problems understands we’re going to need a new source of revenue, and a VAT is an obvious candidate

  Notice how there is no mention of cutting any programs to help solve the deficit, only the idea of finding new revenues (taxes)? The idea of actually spending less money never even occurs to them; its always “how can we screw the taxpayers?” There is also no mention of this tax replacing another tax, it will be in addition to the taxes we already pay.

  This is still a long shot to happen, and it probably wouldn’t happen until after the mid-term elections, but the fact that the talk is there and seems to be gaining momentum is still problematic to those of us who believe that we should be able to keep the money that we earn and not be forced to subsidize the health-care plans of people who do not have health-care in addition to paying for our own health-care. Not to mention the adverse effect this will have on the economy. The last thing that a slowing economy needs is another disincentive for people to spend money. This tax will further cramp an already stalled economy.

   This is how these people operate, they float the idea and it seems like it will never go anywhere, but they never let up, they indoctrinate the people through aggressive campaigning and advertising and convince them that it is for the “common good.”  Eventually they get what they want.

I think interest is quietly picking up,” Graetz said. “People are beginning to recognize that the mathematics of the current system are just unsustainable. You have to do something. And a VAT has got to be on the table if you want to do something big and serious

  Once the mid-term elections are over we can expect to see this sales tax gain even more momentum as this president continues unprecedented deficit spending– the same type of spending that liberals railed against President Bush for. Only this president is spending at levels that have never been seen before.

  As P.J. O’Rourke once said if you think that health-care is expensive now, wait until it is free. Now we are beginning to see how much this “free” health-care is going to cost. I still can’t believe that a majority of Americans really and truly believe in or want to pay higher taxes. I refuse to believe that. Once word of this type of oppressive taxes gets out there I have to believe there will be a revolt at the ballot boxes. By the time that the chance comes to vote the usurpers out it may be too late to reverse the damage that has been done.

  Oh and if this idea ever does gain the momentum and is seriously considered and possibly even someday passed I just have one question. How will the president exempt that ninety five percent of Americans that he promised would see a tax cut? He won’t. He was never serious about cutting taxes on anybody. To quote a term that I heard once on a local radio station, he is a level three tax offender.