The VAT is coming. By now, enough trial balloons have been launched that it is beginning to look like the movie “Up” where the entire house takes flight under a colorful canopy of helium filled gum-drops. The “Value Added Tax”. The name alone is enough to make statists get a tingly sensation running down their legs. What is it about this particular tax that so sparks the imagination of Big Government types? Well, for one it’s a hidden tax. Second, it's a stealth tax. And third, it is a tax that no voter will ever be aware of paying. Wait a minute, all three of those things are the same! That’s just it, the hidden nature of the VAT is it’s only “Raison D’etra”. (that’s French for we’re all screwed...)
The VAT collects a ton of money, requires a huge expansion of police power, no one pays it directly, and politicians can raise it endlessly without ever being held accountable. In short, it is the perfect tax from the government’s perspective. From the citizens perspective, not so much. When you hear VAT, think “Voter Avoidance Tax”. It’s the perfect crime.