A few weeks ago I wrote a diary about a hybrid VAT that would help the US to start getting out of this fiscal quagmire we find ourselves in.
It seems that former President Bill Clinton agrees with me...well the VAT part of my argument anyway.
From The Hill:
"I think they ought to look at a progressive value-added tax, just because — and I think it's important the American people understand this — most of our competitors have tax systems like this," Clinton said.
"If you have a value-added tax ... you lower the income taxes, corporate and personal, and you put a little revenue collector on every stage of sales in a product or service, but if it is exported, you don't pay the last price,"
It is becoming increasingly clearer to a lot of people that the only way out of this fiscal mess is to raise taxes and cut the incessant waste and inefficiency within our government. And it seems that the administration is starting to float the idea of raising taxes on the middle class (as will be required) in order to mitigate whatever comes out of the so called fiscal panel that the President formed earlier this year.
Here is Peter Orszag here
And remember this?
It is inevitable, in my view, that the commission will recommend some type of tax hike (VAT) and some major spending cuts in order to put the country on a guide path to fiscal sanity. Although it will be contingent on how many seats Repubs win in November. If they take over the House then its unlikely that they will play ball. However, this tack will be dangerous for them as they will need to actually come up with a plan instead of just bitching about their opponents plans.