The Republican Mask Slips Once Again

As Republicans accidentally tell the truth.  This time it's former Bush White House shill (now DC PR shill) Tony Fratto letting us know what's coming as soon as the serious centrists get their way:  the VAT tax.(empahsis mine)

The VAT has been attacked by both the Left and the Right, and I’m sure I’ll hear howls of protest from both sides, but the time for a VAT in the U.S. is coming.

Liberals see the VAT as regressive, arguing that it would disproportionately impact lower income groups who spend a relatively larger portion of their disposable income on consumption. Conservatives argue a VAT on top of the current tax system would merely raise more revenue to fund an ever-expanding federal government. They also argue that the tax is so efficient that nominally tiny increases in the rate of the VAT would result in huge revenue increases for federal coffers. 

There’s something to each of criticisms, but all fail to persuade me that a VAT isn’t desirable. And if we’re serious about reforming what is clearly a broken tax system, we need a VAT sooner rather than later.

The United States has the most impressive voluntary tax collection system in the world, but it’s also the most inefficient – and for a large, mature economy that inefficiency is a drag on productivity growth, limiting increases in our standard of living. 

The economic argument for a VAT is unassailable. It is an extremely efficient tax collection tool, that virtually eliminates tax evasion, and – if coupled with an elimination of corporate taxes – would make U.S. firms more competitive globally. 

And right there Fratto gives the game away.  Get rid of corporate tax loopholes by getting rid of corporate taxes...and then turn around and hit all the folks who don't make enough income to pay income taxes with a national sales tax on everything they buy: milk, bread, pop tarts, you name it, you pay the VAT.

Eliminate taxes on the guys making billions a year in profits.  Drag that revenue out of everyone in America who buys anything.  Cut taxes on the rich, raise them substantially on the poor.  No wonder a former Bushie is all for raising taxes.

Watch out for the VAT.  You'd better believe a Republican Congress and President will pass this on you faster than you can say "regressive taxation"...and don't put it past certain members of the Democrats, either.