As the old saying goes, there are only two certainties in life: death and taxes. We need to add one more truism: Democrats will raise your taxes. That, my friends, is as sure as the sunrise.
Paul Volker officially floated this trial ballon yesterday. Charles Krauthammer has been warning us for months that this would be the natural result of the out-of-control spending binge by this Congress, populated as it is by corrupt progressives in both parties. It's an idea that should be shot down, burned, and its ashes spread over salted earth. Then nuked from orbit, just to be sure.
For a quick primer of a VAT, click here. (h/t Flopping Aces)
Noticeably absent in this discussion is the common-sense solution to our mounting deficit: spending reductions. If there were ever a time to reign in government spending, it would be now. Just as most households in America have had to drastically tighten their belts, Washington should be doing the same. Reduced government spending would go a long way towards freeing up much needed capital for the private sector, which would then be multiplied by private businesses as wealth is generated.
We need a flat tax of around ten percent and a mechanism in place that restricts government spending to no more than it takes in. Don't look for that to happen with this Congress, however. As we've seen, drunken sailors have nothing on them, as the deficit chart shows. As bad as the Bush era deficits were, the Obama deficits have the potential to inflict real harm on our country. At least during W's terms, we had a chance to reduce them with a growing economy and full employment. Now, with the economically destructive policies of the Obama administration, we find ourselves mired in a recession that is only getting worse.
Just remind yourself of this very simple rule: each time the price of a good or service goes up, you receive a cut in pay.
Thanks, Washington. Thanks a lot.