Obama's Legacy Might Be A Federal Consumption Tax

And I’m not the only one who thinks so. The ONLY way Obamacare will get paid for is with a federal consumption tax similar to our GST.

That’s where the value-added tax comes in. For the politician, it has the virtue of expediency: People are used to sales taxes, and this one produces a river of revenue. Every 1 percent of VAT would yield up to $1 trillion a decade (depending on what you exclude — if you exempt food, for example, the yield would be more like $900 billion).

It’s the ultimate cash cow. Obama will need it. By introducing universal health care, he has pulled off the largest expansion of the welfare state in four decades. And the most expensive. Which is why all of the European Union has the VAT. Huge VATs. Germany: 19 percent. France and Italy: 20 percent. Most of Scandinavia: 25 percent.

All I can suggest is for the Americans to recall what the GST did to Brian Mulroney (and his tax was balanced with the removal of a 12% Manufacturer’s Tax). If you’re not happy with Obamunism, this tax may be exactly what you need to ensure he doesn’t get a second term in office. I guess every cloud DOES have a silver lining.