NYT: Obama's Economic Team Already Calculating VAT Revenue

/PRNewswire/ -- President Barack Obama's economic team is already calculating government revenues from a possible Value Added Tax (VAT), according to the New York Times.

Article excerpt:

But since any Social Security plan would probably preserve benefits for those nearing retirement, it would not help the administration achieve its goal of reducing the deficit to 3 percent of gross domestic product, from 10 percent, within a decade.

One way to reach that 3 percent goal, by the calculations of Mr. Obama's economic team: a 5 percent value-added tax, which would generate enough revenue to simultaneously permit the reduction in corporate tax rates Republicans favor.

The reported VAT calculations may explain President Obama's recent attempts to alter the terms of his central campaign promise - a promise that no family making less than $250,000 per year would see "any form of tax increase".

Twice in the past ten days, Obama has claimed his pledge applied only to income taxes. In his April 10 Weekly Radio Address, Obama said:

"And one thing we have not done is raise income taxes on families making less than $250,000. That's another promise we've kept."

In a speech on the evening of April 15, Obama repeated the truncated promise:

"And one thing we haven't done is raise income taxes on families making less than $250,000 a year -- another promise that we kept."

In the interest of transparency, Americans for Tax Reform respectfully asks President Obama to immediately release the reported VAT calculations or deny such calculations exist.

Americans for Tax Reform is a non-partisan coalition of taxpayers and taxpayer groups who oppose all tax increases. For more information or to arrange an interview please contact John Kartch at (202) 785-0266 or by email at jkartch@atr.org.