For months, the value-added tax (VAT) was dismissed as simply a rumor; then, the “rumor” gained some traction when an Administration adviser, Paul Volcker, suggested that a value-added tax was a possibility in the near future to curb our nation’s deficit.
The VAT is a hidden, national sales tax that hits consumers across the board, rich and poor alike. Those countries where, as the Administration suggests, the VAT has “worked” have experienced increases from 5% at the introduction of the tax to 20% today. Moreover, their total tax burden has increased to over 40% of their GDP. The VAT tax is not a flat tax.
I believe a value-added tax is wrong and I am proud to cosponsor House Resolution 1346. This resolution unequivocally states that the VAT is not an option—-in other words, it’s off the table—-and that the House of Representatives flatly opposes such a tax. The Senate recently passed a similar resolution with a vote of 85-13.
Curbing our deficits is a top priority, but I believe we need to do that by cutting government, not taxing the middle class and small businesses again.