Friday, April 16, 2010

VAT Tax Resolution Approved: VAT a Massive Crippling Tax

In a non-binding test vote in the U.S. Senate today, a Value Added Tax (VAT) resolution was approved in a vote of 85-13. Senator John McCain introduced the resolution declaring a VAT a "massive tax increase that will cripple families on fixed income." Republican Senator George Voinovich (OH) disagreed with McCain's assessment and so one Republican joined twelve Democrats in supporting a Value Added tax.

Paul Volcker

The twelve Democrats voting for a VAT, along with Republican Voinovitch are:

Daniel Akaka, Hawaii
Jeff Bingaman, New Mexico
Sherrod Brown, Ohio
Robert Byrd, West Virginia
Ben Cardin, Maryland
Byron Dorgan, North Dakota
Ted Kaufman, Delaware,
Carl Levin, Michigan
Jack Reed, Rhode Island
Tom Udall, New Mexico
Jim Webb, Virginia
Sheldon Whitehouse, Rhode Island

Voinovitch, finding that Ohioans were'nt fond of giving him another term, decided to retire from the Senate in January 2011. An April 2010 Rasmussen poll shows Republican Rob Portman "slightly" ahead of his two chief Democratic rivals, Lee Fisher and Jennifer Brunner.

Former Federal Reserve chairman, Paul Paul Volker suggested the VAT this week as a way to further punish the country - especially those angry Tea Partiers bring down the bounding deficit. Volcker is currently the chairman of Obama's Economic Recovery Advisory Board, and apparently has not suggested that Obama et al, just stop spending. Put it on the table and whack it until it's manageable. That's how a real man would manage debt.

From WSJ:
"Though Mr. Volcker didn't say this, he is acknowledging that taxes on the rich can't begin to finance the levels of new spending that the current government has unleased. Even the expiration of the Bush tax rates next January and the new taxes in the health-care bill won't be enough."
It's clear that we MUST drag out the chopping block.

McCain introduced the resolution to show a 'sense of the Senate's' opposition before the idea can grow political legs.

©2007-2012copyrightMaggie M. Thornton