Talk about burying the lede. This from the NYTimes and my pal John Harwood:
One way to reach that 3 percent [deficit-to-GDP] 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.
Me. Not only does it look like they are considering a VAT, the only offset would be lower corporate taxes. The whole thing would be a net tax increase, obviously. I mean, that is the whole point, despite all the talk about its efficient, pro-growth effects. A VAT of that size would raise $250-$300 billion a year in new tax revenue.
Not sure why Obama should give a hoot what Republicans want, since the people don’t either. And I don’t like VAT on principle. Still…
Given a choice between that, cutting Defense Pork or asset-stripping Goldman Sachs to achieve realistic budget aims, some fool somewhere’s always gonna be crazy enough to pick VAT.