Earlier this month I posited that the 10% tax on tanning services was not about health. That tax was about testing out a method for collecting a value added, or sales tax, nationwide. With John Kerry’s latest words, it looks like I was right.
U.S. Sen. John Kerry said yesterday he favors exploring the possible implementation of a new nationwide sales tax similar to ones now imposed throughout Europe.
The issue of a new “value added tax” in the United States emerged earlier this week when Paul Volcker, an economic adviser to President Obama, said the U.S. may need such a tax to close the nation’s long-term budget deficits.
Yesterday, the Congressional Budget Office acknowledged it’s studying a value-added tax, also known as VAT, at the request of unidentified congressional staffers. No dollar amounts were mentioned.
The only way anybody should be exploring a national sales tax is through the as yet unratified 28th Amendment to the constitution, which should make the income, medicare, and social security taxes unconstitutional and replace them with a specifically enumerated value added tax. If and until that happens, we should fight a jobs killing value added tax. We do not have a revenue problem. We have a spending problem.