Research

At a fiscal summit yesterday, Paul Volcker and former President Bill Clinton – both close White House confidants – expressed their support for the Value-Added Tax as a worthy solution to continue fueling Obama’s binge spending. As Reuters reports, Clinton's and Volcker’s comments added to the curious chatter amongst Obama allies praising the VAT as the way of the future.

The idea of a European-style value-added tax got qualified backing on Wednesday from two prominent figures: former President Bill Clinton and former Federal Reserve Chairman Paul Volcker. Both Clinton and Volcker, who is an outside adviser to President Barack Obama, told a private forum on fiscal issues that they saw benefits for the United States from a VAT, a tax on goods at each stage of production.

The VAT is a regressive form of taxation that would be a clear violation of Obama’s pledge not to raise taxes on those making less than $250,000 a year “a single dime.” But as White House gurus subtly prep the field for this Euro-inspired monstrosity, they are also sounding apathetic towards maintaining the President’s “tax pledge.” While Volcker and Clinton waxed about the virtues of a VAT, ABC News reports that OMB Director Peter Orszag is flexible on raising taxes on the middle class:

On the question of whether President Obama can meet his deficit reduction goal while keeping his promise not to raise taxes on couples making less than $250,000 per year, Orszag stuck to President Obama's position that he wants to give the fiscal commission, which held its first meeting yesterday, plenty of running room to come up with a solution.

It’s becoming clearer and clearer that the Administration views their deficit commission as the “Show-Me-The-Vat” Commission.