As I’ve noted before, Obama has brought the tax issue roaring back. Nothing like a liberal president willing to raise taxes on the non-rich (after promising not to), small businesses, and capital before the economy has rebounded to remind voters of the difference between the two parties. The Wall Street Journal‘s editors note:
Bipartisanship has broken out in the Senate, not that the media bothered to notice. Last week John McCain introduced a resolution stating that “It is the sense of the Senate that the Value Added Tax is a massive tax increase that will cripple families on fixed income and only further push back America’s economic recovery.” The resolution passed 85 to 13.
A VAT is a form of national sales tax applied at every stage of production and carried through to the final price paid by consumers. The typical VAT rate in Europe is close to 20%. That’s about how high a VAT would have to be in the U.S. to balance the federal budget, according to the Tax Foundation. Mr. McCain said about his VAT resolution that “With the economy in such bad shape, we should be cutting tax rates now, shouldn’t we?”
Who were the 13? Two who are retiring — George Voinovich (R-Ohio) and Byron Dorgan (D-N.D.) — and a whole bunch of Democrats: Daniel Akaka (Hawaii), Jeff Bingaman (N.M.), Sherrod Brown (Ohio), Robert Byrd (W.Va.), Ben Cardin (Md.), Ted Kaufman (Del.), Carl Levin (Mich.), Jack Reed (R.I.), Tom Udall (N.M.), James Webb (Va.), and Sheldon Whitehouse (R.I.). Kaufman may be toast already, but the others might come to regret walking out on the tax limb.