Twice this morning, I heard different radio talking heads say that Obama may be considering a national sales tax to pay for the cost of the stimulus package he will sign today. Interestingly, I was unable to find a single print reference to this idea.
If it turns out to be true, a national sales tax, effectively the cousin to the EU’s value added tax (VAT), would kill the tepid tax reduction promised to most Americans as part of the stimulus. If a national sales tax is enacted, this slight of hand would reduce the stimulus cost by the value of the tax break, leaving the government with its massive new spending plans intact.
Of course, this is not how Obama-Reid-Pelosi will spin this idea. Instead, it will be more “we need to do something right now” fear mongering like the kind that gave us TARP and, now, stimulus.
This is what 57 percent of us asked for: $2623 in debt per person and new taxes change. Do you believe in it now?