ObamaCare is the law of the land. It is unstoppable now. It was probably unstoppable the moment Romney was nominated GOP presidential candidate. Romney created RomneyCare in Massachusetts when he was governor of that state. He never campaigned as if repealing or reforming ObamaCare was a top priority. This is probably the reason the Republican turnout was down from 2008 - the Tea Party folks stayed away, disappointed by the man who couldn't read what the midterm elections were all about.
Ok, what now? The big news is not the opposition of some states to ObamaCare, or whether some states will create insurance policy exchanges or leave this job to the Feds. The big news is about how ObamaCare will be funded. Despite all the taxes carried into law by ObamaCare, they are woefully inadequate for full funding. The real gold mine to fund ObamaCare is a European-style Value Added Tax. We have no such federal tax today. It is insufficiently unfamiliar to most voters that they won't wake up to its character until it is law. The VAT would not require raising federal and state income taxes, so it avoids that dreary debate. And it has the attraction for all lawmakers of generating tons, and tons, and tons, and tons of money.
Obama has now put a VAT on the negotiating table (1, 2, 3). It's his secret lust.
What could be wrong with it?
The VAT is a greatly regressive tax. It is a tax on production at every stage of production. It is a tax on consumption. Everybody who purchases a refrigerator, or car, or living room carpet, would pay a tax on their purchase. Every manufacturer who builds and added value to these products would have a tax on the value they added to the products. Everybody means the poor as well as the middle class as well as the rich.
To offset the impact of the VAT tax on the poor and middle classes, Obama would say that these groups are receiving subsidies for health care that the tax is funding. He might call for additional federal welfare privileges to be paid by the VAT to make the tax palatable to the non-rich of America.
But, as I said before, three times in the past three years (4, 5, 6), a VAT is coming to America. If you voted for Obama's re-election, you voted for it. Bend over.
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