In an Associated Press article today Obama was suggesting that a new Value Added Tax was 'still on the table.' Even the hint that a VAT is being considered is a direct reversal of Obama's pledge that NO tax increases would hit individuals making under $200k a year. Since a VAT like the ones used in Europe would affect every consumer in America. In a big way.

It is interesting to me that the 'mainstream press' has chosen to ignore the apparant conflict between Obama's pledge during the election and this new 'possiblity.' Thankfully the US Senate passed a non-binding resolution last week effectively giving a big thumbs-down to the VAT. By a vote of 85 - 13. The article by the AP appeared in the Sacramento Bee on page A11

In my opinion a VAT that is added to the current tax system would be the final nail in the coffin of the US economy. If the VAT were proposed to replace the current income tax then the affect would be neglible. BUT, that second option would be a VERY complex proposition. And, it would be ripe for including sneeky perks for certain groups. i.e. unions and campaign donors. Just like the Obamacare bill did.