Sunday, April 11, 2010
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In order to present Obamacare as "deficit neutral," the Democrats had to find fictitious sources of money to pay for it. So they proposed taking a half-trillion dollars out of Medicare, and cut other funds which were intended to pay doctors and hospitals who treat seniors. According to the president's own advisors, these cuts would drive 1-in-5 Medicare providers into bankruptcy.
To keep that from happening, the Democrats have planned all along to add a whole new form of taxes to help pay for their vast, unfunded social programs. The "Value Added Tax" is essentially a national sales tax on everything...making every dollar you've scrimped, saved, and paid taxes on worth less in the marketplace.
As an added bonus, the VAT tax will also slow the economy, discourage job growth, and give bureaucrats in Washington additional power as they trade favors to determine exactly who and what will be taxed.
A VAT makes it easy for politicians to raise taxes a little at a time...rather like slowly raising the flames under a pot of water with a frog in it. Only in this case, it's not a frog who's going to get cooked.