The Tax Man Cometh

2010 April 8
by bc3b

Yesterday Paul Volker suggested implementation of a Value Added Tax (VAT) as a means of covering increasing government growth. Today Ben Bernanke is talking about difficult choices regarding taxes.

Gird your loins and prepare to protect your wallet.

WASHINGTON (AFP) – Facing unsustainable budget deficits, the United States will have to make difficult choices between higher taxes and social spending, Federal Reserve Chairman Ben Bernanke said.

Wading into a fiercely contested political debate, Bernanke said trimming the deficit was made more urgent by the rapidly aging US population.

“Inevitably, addressing the fiscal challenges posed by an aging population will require a willingness to make difficult choices,” he said according to remarks prepared for delivery in Dallas, Texas.

“To avoid large and unsustainable budget deficits, the nation will ultimately have to choose among higher taxes, modifications to entitlement programs such as Social Security and Medicare, less spending on everything else from education to defense, or some combination of the above.”

Read more.

Volcker, answering a question from the audience at a New York Historical Society event, said the value-added tax “was not as toxic an idea” as it has been in the past and also said a carbon or other energy-related tax may become necessary.

Though he acknowledged that both were still unpopular ideas, he said getting entitlement costs and the U.S. budget deficit under control may require such moves. “If at the end of the day we need to raise taxes, we should raise taxes,” he said.

Hat tip: AFP and Reuters

finger-1.jpg picture by bc3b

“About that tax cut for 95% of you ….”

6 Responses leave one →
  1. 2010 April 8 8:41 am
    [1]
    bc3b permalink

    Rush Limbaugh is talking about the VAT right now.

  2. 2010 April 8 8:53 am
    [3]

  3. 2010 April 8 8:57 am
    [4]
    drdog09 permalink

    “About that tax cut for 95% of you ….”

    What I really meant to say was —

    “About that tax rate of 95% for all of you….”

  4. 2010 April 8 8:58 am
    [5]
    bc3b permalink

    Islam is a truly barbaric “religion.” Christians (and I presume all other non-Muslims) have a much more difficult life in today’s Iraq than they did in Saddam’s Iraq.

  5. 2010 April 8 9:51 am
    [6]
    JustMary permalink

    The reality is that the more they add taxes, the less people will buy. We are happy to live on bare essentials. When it becomes too expensive to even obtain the barest, which is I think their ideal end result……who knows. I think we are inching ever closer to a time when all we will have are the very rich and the very poor…which again is their ideal end result. Why don’t the dependent realize their dependence is slavery. They aren’t taking advantage of the man…..tis the other way round.

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