Two and a half weeks ago Fox News contributor Dr. Charles Krauthammer said (I paraphrase)on “Special Report with Bret Baier. A Value Added Tax (a consumption tax on all sales products) is coming, as a way to pay for the massive spending by the Obama Administration.
Now the trial balloon has been launched by the Obama Administration, Former Federal Reserve Bank Chairman and current Obama adviser Paul Volcker, has suggested as much during a talk at the New York Historical Society event in New York.
Volcker answer a question from an audience member. He said that a VAT “was not as toxic an idea” like in times past. An energy tax may also be necessary.
Volcker acknowledged the idea still unpopular but it need to control entitlement growth and Budget deficits down. Volcker says, “If at the end of the day we need to raise taxes, we should raise taxes,” he said.
That interesting considering The president say wont raise taxes on working class and middle class people; well a VAT effects everyone this promise is going out the window.