If you perused the Parade magazine insert in your weekend paper, you might have seen a brief article about the value-added tax.
While the piece discusses the potential revenue windfall a VAT could generate for the federal government, it also discusses a key criticism:
[S]ome policy experts worry that a VAT could actually raise so much money?and so easily?that it would encourage Congressional waste. ?A VAT would take the pressure off the government to rein in spending,? says Rudolph Penner, a fellow with the Urban Institute, a public-policy think tank. ?And the more they spend, the more taxpayers have to shell out.?
If you watched Roy Cordato?s presentation to the Goldsboro tax day Tea Party, you might remember what he had to say about a VAT. Click play below for a reminder:
