Mark Steyn on the coming tax binge if Democrats are not turned out of office in November:
Can we afford this? No. Even on the official numbers, we’re projected to add to the existing $8 trillion in debt another $12 trillion over the next decade. What could we do? Tax those big bad corporations a bit more? Medtronic has just announced that the new Obamacare taxes on its products could force it to lay off 1,000 workers. What do those guys do? Well, they develop products such as the recently approved pacemaker that’s safe for MRI scans or the InterStim bladder control device. So that’s a thousand fewer people who’ll be working on new stuff. Well, so what? The public won’t miss what they never knew they had. So, again, the effect is one of disincentivization – in this case, of innovation.
If existing tax structures can’t cover the costs, what can we do? Start a new tax! The VATman cometh. VAT is Euro-speak for “value added tax.”
Americans often carelessly assume it’s merely a sales tax, but, in fact, it’s far more cumbersome than that, being levied at each stagethat “value” is added to a product or service. The consumer can’t claim back the VAT, but intermediate businesses in the production chain can. So self-employed individuals with relatively modest income wind up both charging VAT to their clients (25 percent in Scandinavia) and then claiming back the VAT they spent on the stamp and stationery they used to mail out the invoice. This is yet another imposition on businesses, taking time away from wealth creation and reallocating it to government paperwork. If the Democrats hold Congress this fall, I would figure on VAT sooner rather than later.
What should be obvious to all but the most oblivious is that Obama has lied – flat lied – about his promise not to tax those making less than $250,000 per year. The health care “reform” he signed into law has a huge tax aimed at so-called “Cadillac” health care plans. Not a few of the people with those plans happen to be union members who negotiated them. Most of those folks are not “rich” as defined by the Obamabots. But they are getting screwed. And will continue to be screwed even worse by these megalomaniacs. There will be a few years grace period, then the bite begins. That’s just on one tax. The VAT will bite even sooner – and they will go for it if they manage to pull off ObamaCare in the long run.
In the meantime, we will all see higher health care premiums and increased attempts to pass even more taxation to cover the frenzied spending spree of the Wizard of 0 and his malevolent munchkins. Throw them out.