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As American taxpayers rush to meet the April 15 deadline to file their taxes, Congressman Bill Posey joined with 54 of his House colleagues as part of the Congressional Anti-Value Added Tax Caucus (Anti-VAT Caucus). The Anti-VAT Caucus is an alliance between Members of Congress and taxpayer advocates dedicated to reducing the tax burden on businesses and individuals and working for policies to stimulate economic growth.
 
“The last thing we need is another massive tax on businesses and families who are already struggling to make ends meet,” said Congressman Posey. “A value-added tax would put unnecessary burden our economy to pay for out of control spending in Washington. Instead lawmakers in Washington should put forward a plan to balance the federal budget and create a better economic environment for all businesses to grow and create new, more permanent jobs for Americans.  Hidden taxes that would come from a VAT simply perpetuate Washington’s out of control spending habit.”
 
A VAT tax is a tax imposed at every stage of production as value is added to an item; from raw material to retail shelves. Paul Volcker, the Chairman of President Obama’s Economic Recovery Advisory Board, recently suggested that government adopt a VAT tax. Speaker Pelosi has also said that a VAT was “on the table to help the U.S. address its fiscal liabilities.”

 

VAT is considered a consequence of big government and out of control spending; not a solution for economic irresponsibility. VAT would likely have the greatest negative impact on low and middle income families.