Senate Says "No VAT"

Well, it looks like the U.S. Senate read my post earlier today about the Value Added Tax (VAT). And, according to the Washington Post, it looks like they've gone on-record in an attempt to prove me wrong: If you haven't read it, my post asserted that we would see an attempt to implement a European-Style VAT.

Today's Senate vote does make that seem unlikely, as the vote was a stunning 85-13 in favor of a non-binding resolution that puts the Senate on-record in opposition of implementing a VAT. Of course, the resolution is non-binding, so they can go back on their word, and these days, I wouldn't put anything past the current Congress. Further evidence suggesting that I may have been incorrect is the fact that 6 of the Senators who voted in favor of the resolution are also on the President's debt commission, and the President's rules stipulate that 14 of the 18 commissioners must sign-off on any recommendation(s). So, unless some of these 6 change their minds, it's unlikely to become an official recommendation.

All of the above having been said, I take pride in having been correct about one thing: the nefarious nature of the VAT. The Post quotes John McCain as saying that "the danger in a VAT is that it is a hidden tax, built into the price of most products, and so consumers aren't as aware the government has taken a share of the money." That is precisely the point I made. The American people may not consider the idea of a VAT toxic -- but the tax is an absolutely toxic tax. We will soon see, however, if the tables don't turn and prove my prediction right...