Wednesday, March 24, 2010

The Tax Man Cometh

Harvard economist Greg Mankiw looks into his crystal ball and sees the potential for European level tax rates in America's future. Though Mankiw sees some potential merit in aspects of the health care bill, he believes it will add significantly to our long-term fiscal problems. He wonders how long before the President comes clean with the American people that his spending programs require higher taxes:
The Obama administration's political philosophy is more egalitarian and more communitarian than mine. Their spending programs require much higher taxes than we have now and, indeed, much higher taxes than they have had the temerity to propose. Here is the question I have been wondering about: How long can the President wait before he comes clean with the American people and explains how high taxes needs to rise to pay for his vision of government?

I hope Mankiw is not holding his breath waiting for the Obama administration to come clean. He shirked the responsibility when he created the deficit reduction committee.

Charles Krauthammer sees the VAT tax in our future to solve the problem. Ed Morrissey notes this was debated while the bills were being written. Clearly it was scrapped knowing Americans would overwhelmingly reject a bill that was paid for with such a tax. Nevertheless, the day of reckoning is coming and with it higher taxes. Be prepared:

1 comment:

  1. The VAT was shoved behind the curtain until after the 2010 elections.


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