Volcker’s Volley: The VAT Battle Begins

J.D. Foster / April 09, 2010

President Obama’s push to enact a massive tax increase in the form of a new value-added tax (VAT) is now clearly underway. Earlier this week, Obama economic adviser and former Chairman of the Federal Reserve, Paul Volcker said a “VAT should be on the table.”

White House claims that Volcker was speaking as a private citizen simply do not pass the laugh test.  A senior statesman among economists, Volcker is one of the president’s closest economic advisers.  No doubt Volcker let the cat out of the bag prematurely from the White House’s perspective, but it is simply not credible to argue that Volcker was not conveying the contents of White House thinking.  There can be little doubt now that the unspoken policy of the Obama administration is to pass a massive VAT tax hike. (more…)