Here’s some catnip for the Charles Krauthammers of the world: Paul Volcker sees big tax hikes coming including, yes, a European-style VAT.
According to Reuters, comments that such a tax might work here, along with also a carbon tax, another noxious idea to conservatives.
We don’t doubt the need to increase taxes to pay off the deficit (in the absence of spending cuts), we just doubt the Congress will have the political will to make it happen.
For now the only tax hike coming is the expiry of the Bush tax cuts in the beginning of 2011.
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