Some on the left are already starting to talk about bringing to America one of the worst aspects of European tax policy:
Sept. 25 (Bloomberg) — John Podesta compared the nation’s current budget crisis to the situation former President Bill Clinton faced in 1993 and said some form of a value-added tax is “more plausible today than it ever has been.”
“There’s going to have to be revenue in this budget,” said Podesta, Clinton’s former chief of staff and co-chairman of President Barack Obama’s transition team, said in an interview on Bloomberg Television’s “Political Capital with Al Hunt,” airing today.
A so-called consumption tax would “create a balance” with European and Japanese economies and “could potentially have a substantial effect on competitiveness,” said Podesta. Value- added taxes in Europe and Japan encourage savings by taxing consumption.
Podesta said such a tax may be regressive, but can be balanced by exempting some products and using “the money to support low-wage workers.”
Except, of course, that we’re not talking about getting rid of the income tax and imposing a pure consumption tax, which is something that might be worth considering. Instead, this would be an additional tax on top of everything else that’s paid, and it would hit low-income workers the worst.
So much for no middle class tax hike.