Turning to domestic news for the moment (and as a distraction from my worries, frankly), I see via @mkhammer that a value-added tax is on the Democrats’ horizon, the better to pay for free health care*:
Unlike a sales tax that applies only to the point of purchase, a VAT taxes the value added at each stage of production. Thus, if the VAT rate is 5% and a producer of raw materials, a manufacturer and a retailer each add $1.00 of value to a product, then each owes the government five cents.
A source close to the Ways and Means Committee said House Democrats may be considering a VAT of 1% to 1.5%. That could raise $70 billion-$105 billion annually, based on calculations from a Con gressional Research Service report.
[snip]
A VAT would be a major headache for President Obama, who has consistently pledged not to raise taxes on 95% of Americans. Republicans are sure to portray a VAT as a violation of his vow.
Well… yes. That would be because it is a violation of his vow. It’s hardly the GOP’s fault if the President’s electoral strategy wrote checks that his governing methodology can’t cash… yes, yes, Top Gun
Moe Lane
*There Ain’t No Such Thing As A Free Lunch.
Crossposted to RedState.