Nothing reduces consumption faster than rising prices. Lower consumption leads to lower overall economic growth. So what idiot would propose raising prices to "avert fiscal calamity?"
According to Lori Montgomery of The Washington Post, the idiot(s) would be:
"... a roomful of tax experts pleaded with Treasury Secretary Timothy F. Geithner to consider a VAT."
A VAT, or Value Added Tax, is sales tax, usually a fixed amount added to the purchase price of any good or service sold. Ms. Montgomery continues that the poor are most hurt, but should promote a VAT because:
"VAT advocates say those negatives could be offset by using the proceeds to pay for health care for every American -- a tangible benefit that would be highly valuable to low-income families."
A good credit score can save money! See your CREDIT SCORE in Seconds - $0
Ahh, now I understand, to add health care to the list of nationalized industries, President Teleprompter needs some extra cash. Is it not clear to the 50% of us who pay income tax that even darker economic times are yet to come??
Cheap? No. 100% Free. Trade stocks for free on Zecco.com. The Free Trading Community. www.zecco.com
Let me provide the fastest and easiest way to get this country out of its economic trouble, REDUCE GOVERNMENT SPENDING!!! Additionally, reduce fees and regulatory burdens on business, as well as eliminating the death tax and capital gains tax. Did I mention eliminating corporate taxation?
Lest anyone forget, this VAT being discussed is ON TOP OF existing federal income tax, and will likely be raised, just like state sales taxes are. Again, higher prices equals less consumption. Less consumption leads to lower industrial and economic production. Lower production leads to unemployment and economic degradation. Stop this VAT nonsense!