Saturday, January 28, 2023
Hawai'i Free Press

Current Articles | Archives

Friday, April 23, 2010
Akaka votes for Federal Value Added Tax-modeled on Hawaii GE Tax (Inouye opposes)
By Heritage Foundation @ 2:20 PM :: 9202 Views :: Energy, Environment, National News, Ethics

Michelle Obama:  “You can't really understand Barack until you understand Hawaii.”

Enough with the VAT talk

Some liberals in Congress want to pay for their massive new spending with a value-added tax, a sort of national sales tax on the price of goods at each stage of production. While popular in Europe, such a tax is a bad idea for the United States. And a significant number of lawmakers and even White House officials seem to agree.

Last week, Sen. John McCain (R-AZ) led a brigade of 85 Senators in a vote denouncing a VAT in America. McCain's non-binding sense of the Senate resolution accurately stated that a VAT would "cripple families on fixed income and only further push back America's economic recovery." Better still, McCain's floor remarks cited Heritage Foundation tax expert J.D. Foster.  (Roll Call HERE  Inouye voted yes with Mc Cain’s anti-VAT resolution, Akaka voted nay, for the VAT.)

Not long after the Senate vote, White House Press Secretary Robert Gibbs insisted that a national consumer tax "wasn't something that the president had under consideration." So far so good.

But President Obama seems to be singing from a different song sheet. In an interview Wednesday, the President indicated that a value-added tax on Americans is still on the table for consideration. A VAT " is something that has worked for some countries," he said. "It's something that would be novel for the United States."

President Obama has stated that his first priority is to figure out how to reduce wasteful spending and reduce the deficit, so he is willing to consider all options. But research by Heritage experts and countless economists reveals that a VAT would actually invite greater spending and economic turmoil, especially as it would be levied in addition to all other taxes.

Imposing a VAT is critical to the left's "Glut the Beast" strategy, argues Foster, Heritage's Norman B. Ture senior fellow in economic policy. He explains the liberal strategy:

First, raise spending as fast as possible. Here, Mr. Obama and his allies have been notably successful. As a share of our economy, federal spending is up almost a quarter since 2008. The recent passage of Obamacare promises to keep government spending rising rapidly for decades.

In addition, a value-added tax is less detectable to the consumer, yet very costly. Economist Thomas Sowell explains in his book Basic Economics that "the less visible a tax is, the more revenue can be collected without resistance or electoral retribution by the voters." So naturally, the heavy spenders in Congress support this option.

The left's support of a VAT comes as no surprise to some. Former House Majority Leader Dick Armey (R-TX) says he "always believed" the Democrats would add a VAT when they won control of the White House and both Chambers of Congress. "Why?" he asks. "Because they've got glutinous spending habits, and they want to spend more, and they need to raise money to do it."

There's no question that the VAT would generate massive new revenues for the federal government. But even the largest tax hikes, which are always harmful to the economy, cannot counter the increasing rate of federal spending, particularly on programs like Social Security and Medicare. In addition, the more money we give to the government, the more we depend on it to give back. And, let's face it, this is never an even trade.

Reducing federal spending and reducing dependency on government are the only workable solutions to lower the deficit and restore prosperity. And a value-added tax does neither.

---30---

RELATED: “VAT”--Hawaii’s GE Tax to be model for Obama

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

808 Silent Majority

ACA Signups Hawaii

Alliance Defending Freedom

Aloha Pregnancy Care Center

American Council of Trustees and Alumni

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Astronomy Hawaii

Back da Blue Hawaii

Ballotpedia Hawaii

Better Hawaii

Broken Trust

Build More Hawaiian Homes Working Group

ChinaTownWatch.com

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

DVids Hawaii

FIRE

Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Habele.org

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii Coalition Against Legalized Gambling

Hawaii ConCon Info

Hawaii Credit Union Watch

Hawaii Crop Improvement Association

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federalist Society

Hawaii Federation of Republican Women

Hawaii Future Project

Hawaii Gathering of Eagles

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Legal Short-Term Rental Alliance

Hawaii Matters

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Smokers Alliance

Hawaii State Data Lab

Hawaii Together

HIEC.Coop

HiFiCo

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Navy League

Honolulu Traffic

House Minority Blog

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

July 4 in Hawaii

Kakaako Cares

Keep Hawaii's Heroes

Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Malulani Foundation

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui

MentalIllnessPolicy.org

Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii

Natatorium.org

National Christian Foundation Hawaii

National Parents Org Hawaii

NFIB Hawaii News

No GMO Means No Aloha

Not Dead Yet, Hawaii

NRA-ILA Hawaii

Oahu Alternative Transport

Obookiah

OHA Lies

Opt Out Today

OurFutureHawaii.com

Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Pritchett Cartoons

Pro-GMO Hawaii

P.U.E.O.

RailRipoff.com

Rental by Owner Awareness Assn

ReRoute the Rail

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

Save Dillingham Airfield

School Choice in Hawaii

SenatorFong.com

Sink the Jones Act

Statehood for Guam

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

UCC Truths

US Tax Foundation Hawaii Info

VAREP Honolulu

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii

Yes2TMT