Hold the VAT — Taxpayers May Prefer Spending Cuts

Michael Barone

4/26/2010

The Obama Democrats’ stealth strategy for increasing the size and scope of the federal government is well underway, despite huge voter backlash. Federal spending has been increased from a 30-year average of 21 percent of gross domestic product to 25 percent, and a bipartisan commission tasked with reducing the deficit may recommend tax increases.

Presidential economic adviser Paul Volcker has already called for a value-added tax, a form of national sales tax, and presidential press secretary Robert Gibbs has declined to rule it out.

The assumption in some quarters is that a tax increase is inevitable and that the public won’t allow any significant decrease in public spending. But there’s reason to question that assumption.

The story continues …..

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