We all know the recent and bitter history of tax struggles in Washington, let alone Mr. Obama's pledge to exempt those earning less than $250,000 from higher income taxes. This suggests that, possibly next year, Congress will seriously consider a value-added tax (VAT). A bipartisan deficit reduction commission, structured like the one on Social Security headed by Alan Greenspan in 1982, may be necessary to create sufficient support for a VAT or other new taxes.
This challenge may be the toughest one Mr. Obama faces in his first term. Fortunately, the new president is enormously gifted. That's important, because it is no longer a matter of whether tax revenues must increase, but how.
Democrats scoffed at the notion that President Obama would raise taxes on all Americans, not just "the rich." But many conservatives tried to explain to the perennially retarded that you can't increase the deficit by a trillion for "stimulus," and expect not to raise taxes. And when you want to add a public health care plan, add crushing environmental regulations and take over American business, you're going to have to figure out how to pay for it.
Over the last eight years, we heard about the "Bush deficits," but those were mainly expenditures related to conducting two wars. Those expenses come to an end. President Obama and the Democrats are talking about creating new entitlements with spiralling costs. There is no end to those.
Now, Democrats are considering a new tax that will affect every American. So much for the "only the rich will pay" rhetoric.