Another European Idea Coming to Hurt Our Economy?
Apr 08, 2010Business & Economic Development Most European countries levy all of the dozens of taxes the US imposes on our workers and job creators; they do have one tax that the U.S. has successfully avoided so far. The Value Added Tax (VAT) is a stealth tax that while it often goes unnoticed by the consumer, it drives up the cost of every good and service that they buy.
At every stage of production a portion of the tax is added. Calculating this correctly is time consuming and expensive for small businesses and mistakes can leave them exposed to fines or other actions by the government. Once in place, politicians find this tax much easier to raise than an income, property or sales tax as its insidious costs aren’t directly seen by most voters.
I think that tax hikes are a bad idea; and raising taxes at a time when 15 million Americans are out of work and there is continuing uncertainty about the economy’s future is an even worse idea. If President Obama and the Democrats in Congress want to take this next step towards becoming a high-tax, low-growth economy, they will do it over my tireless and vocal opposition.