Bush Tax Cuts Set to Expire as Dems Seriously Consider Value-Added Tax

Stuart Varney hosted a panel of WSJ columnists on Fox News’  Journal Editorial Report today to talk about the coming “tax bomb” in 2011, as the Bush tax cuts are set to expire at the end of the year. They also talked about the potential for the Dems to pass a value-added tax this year, which WH economic advisor, Paul Volcker, recently said was on the table.

The USA Today provided more evidence for this on April 8th:

Republicans who argue that President Obama’s deficit commission is likely to consider a European-style value-added tax just got some fresh evidence.

Congressional Budget Office director Doug Elmendorf told reporters this morning that his agency is studying a VAT as part of its “strategic planning” for the future — one in which the $1.5 trillion budget deficit and $12.5 trillion debt must be addressed by policy makers.

[…]

A VAT is a type of sales tax in which each stage of production is taxed. It has the capability of raising huge amounts of revenue for the government. But it’s loathed by anti-tax Republicans.

Here’s the clip of the FNC panel:

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One Response to Bush Tax Cuts Set to Expire as Dems Seriously Consider Value-Added Tax

  1. DCG says:

    A VAT would be disasterous for our econ but I fear with the debt this admin has amassed leaves them no choice. Oh wait, guess they could cut spending /sarc

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