If you want to see how well Jimbo's economic plan for country is playing out, look no further than California. A balanced budget amendment? Really? Spending limits? And look what a two-thirds vote to raise taxes has done to California's budget.Liberals love the idea of a VAT because it’s, well, so European — also because it does raise tons of revenue to expand government. And that is what Obama wants: more revenue to pay for bigger government. Is a VAT better than the soak-the-rich approach favored by Democrats such as Nancy Pelosi and Charlie Rangel? Sure. Of course, the concern is that a VAT would be in addition to new soak-the-rich taxes.
See, even after the recession, there might be a 6 percentage point difference between what Uncle Sam spends as a percentage of GDP and what it takes in. Liberals like Krugman have no problem with making up that difference purely through higher taxes, even though that translates into raising the national tax burden by at least a third. And that, even though such a massive hike might well have a crushing effect on growth.
Obama wants a VAT? First, it should be part of broader tax reform, including getting rid of capital gains and corporate taxes. Second, it should accompany an Economic Bill of Rights much like Ronald Reagan used to suggest. Its elements: a) a balanced budget amendment, b) a line-item veto, c) a spending limit such as inflation plus population growth, d) and a two-thirds vote in the House and Senate for any tax increases. (Reagan also wanted a prohibition on wage and price controls. That would likely kill ObamaCare.)
And come to think of it, let’s cut spending and streamline government before cash-strapped, wealth-reduced taxpayers are forced to pony up a penny more, OK?
Republicans and fiscal conservatives like Jim want the same fate for everyone: to force the government to downsize and eliminate any programs that might benefit the least members of society, or might interfere with corporate disaster capitalism running America and the pork machine that feeds it.
It's always the same, taxes are evil, government is evil, unless it's using your money to give to lobbyists and wars in the Middle East.
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Jimbo says the rich folks will at some point in time, when they are done golfing, boffing hookers, shopping, attending parties and fundraisers if they deign to notice might, just might if they have a warm and fuzzy feeling and we all beg like good dirty submissive little peasants, donate money to take of something. As long as it means the filthy American peasants aren't disturbing their precious little minds with stupid things like living and shit.
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