Obama’s “Show Me the VAT” Commission

Meeting for the first time this week, Deficit Commission being used by Obama to push
National Sales Tax to pay for his binge-spending

OBAMA WILL USE DEFICIT COMMISSION TO PUSH FOR EUROPEAN-STYLE VALUE-ADDED TAX
Executive Director of Obama’s fiscal commission says VAT among options to bring more revenue

Obama told CNBC that VAT would be “novel for the United States,” is among options to
"I know that there's been a lot of talk around town lately about the value-added tax. That is something
that has worked for some countries. It's something that would be novel for the United States." (CNBC's
"Street Signs," 4/20/10)

Obama's economic team has already calculated how large VAT would need to be in order to pay for their
binge-spending
“…One way to reach that 3% goal, by the calculations of Mr. Obama's economic team: a 5 percent
value-added tax ..." (John Harwood, The New York Times, 4/18/10)

Obama economic adviser Paul Volcker says the VAT is needed to get Obama’s deficit under control
"The United States ... may need to consider a European-style value-added tax, White House adviser
Paul Volcker said on Tuesday. Volcker ... said the value-added tax 'was not as toxic an idea' as it has
been in the past ... 'If at the end of the day we need to raise taxes, we should raise taxes,' he said."
(Volcker, Reuters, 4/6/10)

DESPITE THE FACT THAT THE TAX WOULD VIOLATE HIS CAMPAIGN PLEDGE,
HIT MIDDLE-CLASS AMERICAN FAMILIES HARD ...
Co-Chair of Obama’s Deficit Commission, Erskine Bowles, says that the President wants “everything on the
table” to pay for huge deficits, even if it breaks his campaign pledge regarding taxes
"What i feel bound by is the President looked Senator Simpson and me in the eye and he said,
'Everything is on the table.' ... We have to have everything on the table," said Bowles. ( Fox's "Fox News
Sunday," 4/25/10)
Obama’s pledge was to have no tax increases of any kind on families making less than $250,000

Value-Added Tax being considered by Obama would in fact violate his tax pledge
Because the VAT is a tax on the transfer of goods, services and would increase the price of EVERYTHING
Some experts suggest a VAT rate at 20%
 “At that rate, a VAT that covers all goods and services in the economy – including food,
clothing, housing, and health care – would collect an additional $1,260 billion a year
and cost every U.S. household $10,680 annually," says Curtis Dubay of the Heritage
Foundation.
Which is why this European-style tax would fall “heavily on the poor”
The VAT Tax is “hugely regressive, falling heavily on the poor,” says Lori Montgomery of the
Washington Post.
 ALL TO PAY FOR HIS RECORD BINGE SPENDING SPREE
According to the CBO, Obama’s deficit in 2010 is projected to be a historically high $1.5 trillion
That deficit would amount to 10.3% of the GDP
This comes after Obama rang up a record-setting $1.42 trillion deficit in his 1st year in office, nearly
triple the previous record

According to CBO, Obama’s budget will create 10 year deficits that total $9.75 trillion

Obama’s budget will lead to a $20.3 trillion debt by 2010, equaling 90% of our GDP, according to the CBO
That means for every $10 the American economy generates, Obama will be creating $9 in new debt

Help debunk the Dems.

Spread the facts to your friends, family and colleagues.

Paid for by the Republican National Committee

310 First Street SE, Washington, D.C. 20003
(202) 863-8500 - www.gop.com
Not authorized by any candidate or candidate's committee