Odd Citizen
An Odd Citizen’s Search For Vanishing Freedoms

Nov

13

Obama Wants to Reduce Deficit, How?

Filed Under Idiocy, Uncategorized

So now we hear that Obama wants to reduce the deficit, and might even abandon Cap & Trade next year. Interesting if true.

Of course, there are two ways to reduce the deficit: a) Limit Spending and b) Increase Taxes. Based on past experience it is a fairly safe bet that what the Obamacrats have in mind is the latter, a big fat tax increase, and not just on the “people earning over $250,000 per year.” These people don’t earn enough to make a dent in the irresponsible Obama-Pelosi Democrat spending binge.

In order to make some impact on a $1.4 Trillion deficit in a $14.0 Trillion economy, only a value added tax is big enough to do the job and sneaky enough to get passage. It can be sold as a patriotic effort to control the deficit, reassure international lenders, protect American exports all the while aligning the U.S. economy with those of European allies, such as France, Germany and Britain, all of which have VAT taxes. A 10% VAT on nearly everything would theoretically raise $1.4 Trillion, which would theoretically wipe out the deficit.

That’s the theory. In practice it would devastate the U.S. economy by making everything 10% more expensive. It would completely kill off entrepreneurship and innovation and would be the most devastating killer of jobs imaginable. Look at most of Europe for an example of what this kind of burden does to an economy. And who’s to guarantee that the additional revenue wouldn’t just be spent on new government programs by an irresponsible, drunken congress?

Remind me to wake up from this nightmare!

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